As imports drop, Singapore fuel oil inventories hit a 7-week high as import volumes fell
Singapore residual fuel oil inventories in the week ended Oct. 27, marking four consecutive weeks of stock build-up, as weekly net import volumes decreased but were near the 2021 weekly average, according to official data on Thursday.
Onshore fuel oil stocks rose by 109,000 barrels, or about 17,000 tonnes, to a seven-week high of 21.8 million barrel, ou 3.43 million tonnes.
However, the residual fuel stocks were still 6% lower than the year-ago levels and well below the weekly average of 22.76 million barrels for 2021.
Singapore’s weekly net import volumes fell to 609,000 tonnes in the week ended Wednesday, a 47% decrease from the five-week high of 1.15 million tonnes the previous week. However, weekly figures are volatile.
By comparison, Singapore fuel oil net imports have averaged 681,000 tonnes a week since 2021.
The rise in stocks may have been attributed to terminal congestion at one of Singapore’s storage facilities due to a recent COVID-19 outbreak, causing bunker barge loadings are delays, according to trade sources.
Malta had the largest net imports of 160,000 tonnes, followed by Belgium at 126,000 tonnes; Malaysia at 1077,000 tonnes and Japan at 93,000 tonnes.
Malta fuel oil imports from Singapore were at a three-year high, while Japan fuel oils importations were their highest since April 2020.
The top net export destinations for Singapore fuel oil were China with 105,000 tonnes, followed by Bangladesh with 89,000 tonnes and Mozambique with 30,000 tonnes.
According to Refinitiv Oil Research, fuel oil flows into East Asia, most of which go to Singapore, were between 5.5 million tonnes and 6 million tons in October, compared with 5.1 million metric tons earlier in the year.]
“Increased volumes this month are due to increased volumes entering the major refining centres as fuel oil feedstocks,” according to Refinitiv Oil Research.
This month, arrivals to China, India, and South Korea are estimated at 1.74 million tonnes, 0.76 million tons, 0.7 million pounds, respectively, the most in three months for all three.”