- Singapore residual fuel oil inventories jumped 11% to a more than four-year high in the week to May 5 despite lower net import volumes which sank to a five-week low.
- This also came amid steady to lower marine fuels demand at the world’s top bunkering hub.
- Some buyers have held off on spot purchases in anticipation of lower oil prices while others may have bunkered in China where prices have been lower recently.
A Nasdaq news source by Roslan Khasawneh reveals that despite lower net imports, Singapore fuel oil stocks surge to over 4-year high.
Lower marine fuels demand
This also came amid steady to lower marine fuels demand at the world’s top bunkering hub as some buyers have held off on spot purchases in anticipation of lower oil prices while others may have bunkered in China where prices have been lower recently, four trade sources said.
Onshore fuel oil stocks jumped by 2.67 million barrels, or about 420,000 tonnes, to 27.23 million barrels, or 4.29 million tonnes, Enterprise Singapore data showed.
The increase in volumes was the largest weekly jump in 1-1/2 years.
Last year’s performance
Compared with last year, Singapore’s residual fuel stocks were 13% higher.
Increased arbitrage flows into the Singapore hub since March helped lift fuel oil stocks away from a near 1-1/2-year low in February.
Net import volumes fell 34% from the previous week to 476,000 tonnes and were well below above the 2021 weekly average of 806,000 tonnes. Weekly figures, however, are volatile.
The largest net imports were from the United States at 137,000 tonnes, followed by the Netherlands with 134,000 tonnes, Russia with 117,000 tonnes and Iraq with 100,000 tonnes.
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Source : Nasdaq