Residual fuel oil stocks at key trading hub Singapore rebounded to three-week highs in the week to Aug. 23, official data showed on Thursday, led by a jump in imports from the United Arab Emirates (UAE).

Onshore fuel oil stocks STKRS-SIN rose 10%to 22.10 million barrels (3.48 million metric tons), data from Enterprise Singapore showed. O/SING1

Total fuel oil imports climbed 14% week-on-week to 945,000 tons, while fuel oil exports also edged higher to 351,000 tons.

The UAE was the top origin for Singapore’s fuel oil imports, with volumes at 354,000 tons, versus zero volume last week.

A strong high-sulphur market continued to provide a draw for Middle Eastern barrels to Asia, according to ship-tracking data from Refinitiv.

Monthly fuel oil supplies from the Middle East to Asia surpassed 2 million tons in both July and August, compared with an average of 1.4 million tons/month in the first half of 2023, the data showed.

Prices of high sulphur fuel oil rallied in early August, though the market showed signs of easing this week.

Singapore’s 380-cst HSFO cash differential FO380-SIN-DIF fell below $20 a ton for the first time in more than three weeks, after hitting 16-month highs in early August.

Meanwhile, most of Singapore’s fuel oil exports landed up in Malaysia, Hong Kong and Bangladesh in the week to Aug. 23, showed Enterprise Singapore data.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Subhranshu Sahu)