Singapore fuel oil stocks extend gains to hit 7-week high
Singapore’s residual fuel oil inventories rose 6% in the week to January 12, moving further away from multi-month lows at the end of 2021 despite lower weekly net import volumes, according to sources. official data released Thursday.
Onshore fuel oil inventories rose by 1.29 million barrels, or about 202,000 tons, to a seven-week high of 22.34 million barrels, or 3.32 million tons, in the week to Wednesday , according to data from Enterprise Singapore.
The increase helped push residual fuel inventories further away from a three-month low of 19.56 million barrels in the week to Dec. 29.
Weekly inventories, however, were flat on year-ago levels and slightly lower than the 2021 weekly average of 22.48 million barrels.
Singapore’s net fuel oil imports were at a two-week low of 786,000 tonnes from the week to Wednesday, down 19% from the previous week but above the 2021 weekly average of 660,000 tonnes. Weekly numbers are volatile, however.
The largest net imports came from the floating storage facility in Malaysia with 310,000 tonnes, followed by Brazil with 206,000 tonnes and 67,000 tonnes each from Thailand and the United Arab Emirates.
The main net export destinations for fuel oil from Singapore were Japan with 58,000 tonnes, followed by New Caledonia with 41,000 tonnes and Papua New Guinea with 20,000 tonnes.
Fuel oil flows to East Asia, most of which arrive in Singapore, are expected to reach between 4 and 4.5 million tonnes in January, up from 4.4 million tonnes the previous month, according to the latest estimates from Refinitiv Oil Research.
“The decline in arrivals is mainly due to the decline in entries from the Middle East so far, with the decline being limited by the increase in arrivals from the West Arb,” Refinitiv analysts said, adding that intra-Asian regional supply was also low as North Asian exporters withheld supplies for the domestic market. use due to high demand for utilities.
Source: Reuters (report by Roslan Khasawneh; editing by Subhranshu Sahu)