- Asia’s residual fuel markets eased with cash premiums, time spreads, and refining margins for both 0.5% and high-sulfur fuel oil slipping from their respective highs.
- Onshore fuel oil stocks surged by 3.45 barrels, or about 543,000 tonnes, to a seven-week high.
Asia’s residual fuel markets eased with cash premiums, time spreads, and refining margins for both 0.5% very low-sulfur fuel oil (VLSFO) and high-sulfur fuel oil (HSFO) slipping from their respective highs hit in the previous session, says an article published in Business Standards.
The surge
According to Enterprise Singapore data, onshore fuel oil stocks surged by 3.45 barrels, or about 543,000 tonnes, to a seven-week high of 24.15 million barrels, or 3.8 million tonnes. That came despite a 19% drop in Singapore’s weekly net import volumes, which fell to a six-week low of 434,000 tonnes, or about 2.76 million barrels. The net imports were below the 2021 weekly average of 676,000 tonnes for the seventh straight week. Weekly figures, however, are volatile. A year earlier, residual fuel stocks were 16% higher and above the 2021 weekly average of 23.09 million barrels.
Increasing imports
Malaysia had the highest net imports, with 172,000 tonnes, followed by the United Arab Emirates (UAE), 112,000 tonnes, Taiwan, 92,000 tonnes, and the United States, 82,000 tonnes. Singapore’s net imports of Taiwanese fuel oil reached their highest level since December 2017. Saudi Arabia was Singapore’s top net export destination, with 100,000 tonnes, a three-week record, followed by Hong Kong with 36,000 tonnes and Bangladesh with 20,000 tonnes. So far this year, Singapore has exported 578,000 tonnes of fuel oil to Saudi Arabia, compared to 1.56 million tonnes in 2020.
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Source: Business Standards
