Onshore fuel oil storage volumes in Singapore dipped to their lowest in two weeks after imports retreated slightly, though inventories remained higher than last month’s average, data showed on Thursday.

The inventories fell 2.3% to 18.79 million barrels (about 2.96 million metric tons) in the week to Dec. 4, showed data from Enterprise Singapore.

The dip was led by easing net imports, which were down 26.9% at 532,000 tons in the week. The figure is calculated by subtracting total exports from total imports.

However, the stockpiles were still above November’s average of 18.15 million barrels per week.

Supply inflows remained strong in the week, with most imports hailing from the United States, Saudi Arabia and Indonesia, excluding cargo movements from Malaysia.

Meanwhile, most fuel oil outflows out of Singapore storage tanks were headed for South Korea, China and Bangladesh.

Amid heavy supply arrivals and ample inventories, spot premiums for fuel oil have softened in recent trading sessions.

Singapore’s benchmark cash premium for 0.5% low sulphur fuel oil dropped below $2 as of this week, pricing data showed.

The fuel oil market has softened amid an uptick in supplies to Asia, with prices expected to trend stable-to-lower into December, some trade sources said.
Source: Reuters