The volume of fuel oil stored in onshore tanks at key trading hub Singapore has rebounded after last week’s slump, but was below the August weekly average, data showed on Thursday.

Fuel oil stockpiles were at 18.55 million barrels (about 2.92 million metric tons) in the week to Sept. 18, edging up 10% from the previous week, Enterprise Singapore data showed.

The inventories averaged 18.05 million barrels per week in September so far, remaining below an average of 18.81 million barrels in August.

Total imports extended gains for a second week, climbing to about 779,000 tons in the week to Sept. 18, led by higher inflows from the United Arab Emirates.

Meanwhile, total exports more than doubled week-on-week, rising to about 304,000 tons. China was the main destination for the outflows.

A strong backwardation persisted in the Asia fuel oil market, trade sources said, even though this has narrowed compared to previous weeks.

Singapore’s balance-September/October timespread for 0.5% low sulphur fuel oil hovered above $10 per ton this week, though this has narrowed sharply compared with about $30 per ton in early September.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Eileen Soreng)