Singapore’s fuel oil stockpiles have continued to rise for the third consecutive week, according to data from Enterprise Singapore. The onshore stockpiles increased by 1.6% to reach 19.16 million barrels (3.02 million metric tons) in the week ended June 12, hitting a five-week high.
The rise in stockpiles can be attributed to the recovery in imports, with net imports more than tripling from the previous week to about 538,000 tons. Brazil was the top origin for inflows for the second consecutive week, with imports reaching 185,000 tons. On the other hand, the top destinations for fuel oil outflows from Singapore included China, Bangladesh, and Vietnam.
Despite the increase in stockpiles, fuel oil price benchmarks have remained rangebound in recent trading sessions. Industry sources suggest that spot premiums for the low-sulfur market have been hovering around $1 to $2 a ton over Singapore quotes, while high-sulfur 380-cst premiums held steady between $11 to $12 a ton.
In terms of imports and exports, countries like Bahrain, Denmark, and Malaysia saw significant activity during the week ended June 12. Bahrain imported 83,563 tons of fuel oil, while Denmark imported 146,853 tons. Malaysia, on the other hand, imported 165,027 tons and exported 107,904 tons.
Overall, the data from Enterprise Singapore highlights the ongoing dynamics in the fuel oil market, with imports playing a key role in driving stockpile levels. As the market continues to evolve, stakeholders will be closely monitoring these trends to gauge future price movements and supply-demand dynamics.