Onshore fuel oil inventories at key trading hub Singapore rebounded in the final week of January, driven by a surge in supply arrivals.

Inventories climbed 11.6% to 23.44 million barrels (3.69 million metric tons) in the week to Jan. 31, hitting a more than nine-month high, Enterprise Singapore data showed.

Fuel oil inventories averaged 22.5 million barrels a week in January, extending gains from 20.5 million barrels a week in December, calculations based on the data showed.

Total net imports more than quadrupled in the week to Jan. 31, breaching 1 million tons, with most supplies hailing from storage hub Malaysia as well as from Russia and Indonesia.

The East of Suez region remains well-supplied due to an influx of cargoes in January, though the February and March outlook appears volatile, trade sources said.

Red sea shipping disruptions and diversions have led to a surge in freight costs and fuel prices in the west, dampening west-to-east arbitrage economics for fuel oil, said sources.

Meanwhile, Singapore’s fuel oil outflows were mostly headed for New Zealand, Australia and South Korea in the final week of
January, the Enterprise Singapore data showed.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Subhranshu Sahu)