Singapore fuel oil stockpiles slip, snaps four-week climb

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Onshore fuel oil stockpiles at key trading and storage hub Singapore fell in the week ended June 26 after climbing for four straight weeks, the latest data showed Thursday.

Inventories fell 15.4% to 19.29 million barrels (3.04 million metric tons) in the week ended June 26, hitting a two-week low, Enterprise Singapore data showed.

Despite the weekly drop, the inventories remained ample, averaging 20.03 million barrels a week in June and higher thanMay’s average of 18.09 million barrels a week.

On the exports front, the top destinations for fuel oil outflows from Singapore’s onshore tanks were Hong Kong, Bangladesh and Vietnam in the week ended June 26.

Meanwhile, fuel oil imports mostly hailed from Brazil and the United States,as arbitrage flows from the West to Asia remained robust this month.

More imports also arrived from Indonesia, with state-owned Pertamina offeringconsistent supplies via monthly tenders, recent records showed.

Spot premiums for the low-sulphur market MFO05-SIN-DIF have remained rangebound for most of June before rebounding this week, while high-sulphur fuel premiums FO380-SIN-DIF have come under pressure following a rally.

Total incoming fuel oil supplies to Asia in June neared 6 million tons, higher compared to May volumes, data from LSEG Oil Research showed.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Eileen Soreng)

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