Singapore’s onshore fuel oil stockpiles experienced a slight decrease this week, yet they remain above the 21 million barrel mark, a figure that surpasses typical averages. As of April 2, the country’s residue inventories stood at 21.17 million barrels, which is approximately 3.33 million metric tons. This represents a 2.5% decline from the previous week, according to data from Enterprise Singapore. The reduction in stockpiles is attributed to a week-on-week dip in net imports, which amounted to around 295,000 tons.
The Middle East continued to be the primary supplier for Singapore, with Iraq and the United Arab Emirates leading the way in exports to the country for this reporting period. In March, Asia saw a significant influx of supplies, which has influenced fuel oil benchmarks into April. This shift in supply dynamics has led to spot differentials for 380-cst high-sulphur fuel oil turning into a discount this week, reversing a trend where premiums had persisted for nearly a year. Additionally, data from Enterprise Singapore indicates that the majority of fuel oil outflows from Singapore during the week ending April 2 were directed towards China, Hong Kong, and Sri Lanka.
This movement of fuel highlights the ongoing dynamics of the regional oil market and the steady demand in these markets. Overall, despite the slight decrease in inventory, Singapore’s fuel oil reserves remain robust.