Residual fuel oil stockpiles at key trading hub Singapore fell despite a sharp uptick in imports, showed official data on Thursday, amid a strongly backwardated market, reports XM.
Onshore fuel oil Inventories fall
Onshore fuel oil inventories STKRS-SIN fell 0.5% to 19.44 million barrels (3.06 million metric tons) in the week ended Nov. 1, data from Enterprise Singapore showed. O/SING1
The dip came amid a firm market backwardation, which discourages storage economics and prompts selling interest as spot prices are higher than for later months.
Singapore’s balance-month backwardation for 0.5% very low sulphur fuel oil hit $34.50 a metric ton on Nov. 1, logging more than a year’s high, LSEG data showed.
However, a jump in net fuel oil imports capped the drawdown in the weekly inventories.
Net imports, calculated by subtracting total exports from total imports, more than quadrupled week-on-week to 1.14 million tons, based on the Enterprise Singapore data.
Most of Singapore’s fuel oil imports in the week to Nov. 1 hailed from Malaysia, Brazil and Turkey, the data showed.
Meanwhile, most of the exports were headed for China, Bangladesh and India in the same week.
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Source: XM
