Singapore fuel oil stocks at two-week low as net imports fall

Singapore’s residual fuel oil inventories fell in the week ended Feb. 2, falling 3% from a nearly five-month high the week before, as net import volumes fell, according to sources. official data released Thursday.

Onshore fuel oil inventories fell 697,000 barrels, or about 110,000 tons, to a two-week low of 23.09 million barrels, or 3.64 million tons, in the week ended Wednesday, according to Enterprise Singapore data.

Still, weekly residual fuel stocks in Singapore were 8% above year-ago levels and above the 2021 weekly average of 22.48 million barrels.

It came as Singapore’s net imports of fuel oil fell to a five-week low of 239,000 tonnes in the week to February 2, down 82% from a peak of nearly a year. year and a half from 1.3 million tonnes the previous week. The weekly numbers are volatile, however.

Net weekly fuel oil imports have averaged 721,000 tonnes so far this year.

The largest net imports came from the floating storage center in Malaysia with 271,000 tons, followed by Thailand with 68,000 tons, Brazil with 53,000 tons and Chile with 31,000 tons.

The main net export destinations for fuel oil from Singapore were China with 88,000 tonnes, followed by India with 81,000 tonnes and Hong Kong with 9,000 tonnes.

Fuel oil flows to East Asia, most of which arrive in Singapore, closed at 6 million tonnes in January, up from December inflows of 4.7 million tonnes, according to the latest assessments. from Refinitiv Oil Research.

Refinitiv Oil Research said it “expects low sulfur fuel oil (LSFO) market fundamentals to remain broadly strong through at least the first half of the year, maintaining the strength with which it kicked off 2022, largely due to tight gas oil supply which limits the availability of blending components to produce LSFO.
Source: Reuters

Steve R. Hansen