Singapore fuel oil stocks extend gains to peak in 7 weeks – Markets

SINGAPORE: Singapore’s residual fuel stocks rose 6% in the week to Jan.12, moving further away from multi-month lows at the end of 2021 despite a drop in weekly net import volumes, according to official data released Thursday.

Onshore fuel stocks rose 1.29 million barrels, or about 202,000 tonnes, to a seven-week high of 22.34 million barrels, or 3.32 million tonnes, during the week through Wednesday, according to data from Enterprise Singapore.

The increase helped push residual fuel inventories further from a three-month low of 19.56 million barrels in the week to December 29.

Weekly stocks, however, were stable from last year’s levels and slightly below the 2021 weekly average of 22.48 million barrels.

Singapore’s net fuel oil imports were at a two-week low of 786,000 tonnes in the week to Wednesday, down 19% from the previous week but above the 2021 weekly average of 660,000 tons. The weekly figures are volatile, however.

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The largest net imports were from Malaysia’s floating storage facility with 310,000 tonnes, followed by Brazil with 206,000 tonnes and 67,000 tonnes each from Thailand and the United Arab Emirates.

Singapore’s main net fuel export destinations were Japan with 58,000 tonnes, followed by New Caledonia with 41,000 tonnes and Papua New Guinea with 20,000 tonnes.

Fuel oil flows to East Asia, most of which arrive in Singapore, are expected to be between 4 and 4.5 million tonnes in January, up from 4.4 million tonnes in the previous month, according to the latest estimates. by Refinitiv Oil Research.

“The drop in arrivals is mainly due to lower arrivals from the Middle East so far, with the downside being limited by higher arrivals from the Western Arb,” Refinitiv analysts said, adding that the Intra-Asian regional supply was also low as North Asian exporters suspended supplies for the domestic market. due to the high demand for utilities.

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Felix J. Dixon