Onshore fuel oil stockpiles at key trading hub Singapore slipped further, hitting their lowest in seven weeks, as exports jumped and imports fell, data showed on Thursday.

Residual fuel inventories (STKRS-SIN) were at 20.54 million barrels (about 3.24 million metric tons) in the week to May 7, based on Enterprise Singapore data.

Total exports out of the tanks more than quadrupled week-on-week to about 488,000 tons, calculations based on the data showed, with China as the top destination.

Meanwhile, total imports into the tanks fell by around 80% week-on-week at nearly 646,000 tons. The top supplier country for the week was Iraq.

Asia continues to receive strong volumes of high-sulphur fuel oil from the Middle East over recent weeks, trade sources said.

Despite the weekly decline in onshore inventories, the region remains plentifully supplied, sources said.

This has weighed on spot differentials particularly for high-sulphur fuel oil, which have sunken into discounts to cargo quotes. Meanwhile, spot differentials for low-sulphur fuel oil held rangebound this week.
Source: Reuters