Residual fuel oil stocks climbed slightly at key trading hub Singapore despite a drop in weekly net imports, official data showed on Thursday.

Onshore fuel oil stocks rose 0.9% to 20.57 million barrels (3.24 million metric tons) in the week to July 5, reaching three-week highs, Enterprise Singapore data showed.

Weekly net imports, calculated by subtracting total exports from total imports, fell 36% week-on-week at about 473,000 tons.

Tepid demand for bunker fuel could have led to a build in inventories, despite a drop in weekly net impors.

Reflecting weak demand, the price of delivered bunker fuel has in recent days been on par with, or lower than, the price of ex-wharf bunker fuel, trade sources said.

To break even, delivered bunker fuel is usually sold above ex-wharf prices, as it includes a barging fee that typically costs at least $5 a tonne.

Meanwhile, most of Singapore’s fuel oil imports hailed from the United Arab Emirates this week, with net import volumes at about 171,000 tons. This was followed by Russia at 113,000 tons and Kuwait at 82,000 tons.

Exports out of Singapore mostly ended up Hong Kong, Bangladesh and Philippines.

Singapore’s spot fuel oil market continued to soften in recent sessions, with cash premiums for 0.5% very-low sulphur fuel oil extending a downtrend in the last two weeks.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Krishna Chandra Eluri)