Onshore fuel oil inventories in Singapore have experienced a rise for the fourth consecutive week, driven by strong import levels, according to recent data. As of June 11, the residual fuel stockpiles reached 23.71 million barrels, equivalent to approximately 3.73 million metric tons.
This marks a 5% increase from the prior week, as reported by Enterprise Singapore. Notably, inventory levels have remained consistently above the average weekly figure of 20 million barrels throughout this four-week period.
The ongoing high supply of fuel oils to the Asia region has significantly contributed to the increased stockpiles. Import figures indicate that Singapore’s fuel oil imports rose by 3% from the previous week, amounting to around 784,000 tons.
The latest data reveals that a majority of these imports originated from Nigeria, Russia, and Mexico, highlighting the diverse sources influencing Singapore’s fuel oil market. In contrast to the rising import figures, exports from Singapore’s tanks also showed a noteworthy increase, totaling approximately 403,000 tons, which is a 21% rise week-on-week.
The main destinations for these exported cargoes were China, the Philippines, and South Korea. This dynamic between rising imports and exports has created a complex market environment.
However, the elevated inventory levels have exerted downward pressure on the spot market, particularly affecting the downstream bunker differentials. Observations indicate that high-sulphur marine fuel differentials have dipped into discounts relative to prevailing fuel oil cargo quotes, suggesting shifts in market sentiment and demand.
Overall, the accumulation of fuel oil stockpiles in Singapore reflects broader trends within the regional oil market, highlighting both the challenges and opportunities faced by stakeholders in this sector.