Singapore’s fuel oil stockpiles have seen a notable increase this week, coinciding with a rise in net imports, as indicated by the latest data release. According to figures from Enterprise Singapore, residual fuel inventories in the key trading hub reached 22.50 million barrels (approximately 3.54 million metric tons) for the week ending June 25.
This represents a rise of about 5% compared to the previous week, marking a sustained trend where inventories have remained above the typical weekly averages for six consecutive weeks. The rise in net imports, calculated by subtracting total exports from total imports, reached 418,000 tons this week, reflecting an 8% increase from the previous week.
The majority of the fuel oil imports were sourced from Brazil and Mexico, while exports from Singapore predominantly went to China. This influx of supply has contributed to maintained inventories, which, in turn, is impacting price benchmarks in the market.
Consequently, spot premiums for high sulphur fuel oil have dipped to a one-month low this week, indicating a softer market environment. Similarly, premiums for very low sulphur fuel oil have also eased.
The dynamics between supply availability and price adjustments illustrate the ongoing challenges facing the fuel oil market in Singapore, as traders navigate the influences of both domestic stock levels and international trade patterns.