Singapore fuel oil stocks dip to 4-week low due to weak imports

SINGAPORE, June 24 (Reuters) – Singapore’s residual fuel stocks fell 2% in the week to June 23, falling for the second week in a row as net import volumes remain low, official data shows published Thursday.

Onshore fuel stocks fell by 574,000 barrels, or about 90,000 tonnes, to a four-week low at 23.4 million barrels, or 3.69 million tonnes, according to data from Enterprise Singapore.

Compared to the same period a year earlier, residual fuel inventories were 12% lower but were comparable to the 2021 weekly average of 23.24 million barrels.

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Singapore’s net fuel oil imports fell 35%, adding to a 47% drop the week before, to a four-week low of 323,000 tonnes, less than half of the 2021 weekly average of 730 000 tons. The weekly figures are volatile, however.

The largest net imports came from Malaysia with 364,000 tonnes, followed by Brazil with 166,000 tonnes, Thailand with 89,000 tonnes and the United Arab Emirates with 68,000 tonnes.

Singapore’s imports of residual fuels from Thailand peaked more than two years, and those from Brazil hit a nine-week high.

The main destinations for Singapore’s net fuel oil exports were China with 120,000 tonnes, the highest in five months, followed by Bangladesh with 86,000 tonnes and South Africa with 36,000 tonnes.

The increase in exports to China was likely supported by growing demand for fuel oil feedstocks by China’s independent refineries, trade sources said, which resumed imports after a hiatus of nearly five years, so as Beijing’s crackdown on trade in crude oil quotas as well as the new limit on fuel taxes refinery feedstock options.

Fuel oil flows to East Asia, most of which arrive in Singapore, were estimated at between 5 million tonnes and 5.5 million tonnes in June, a steady increase from 5.11 million tonnes. tonnes in May and significantly higher than the 2020 monthly average of 4.82. million tonnes, according to the latest estimates from Refinitiv Oil Research on Tuesday. ]

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Reporting by Roslan Khasawneh; Editing by Amy Caren Daniel

Our Standards: Thomson Reuters Trust Principles.

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Felix J. Dixon