S&P Global Commodity Insights, in its latest Market Watch report, notes that Singapore’s fuel oil inventories fell by 8% week-on-week, reaching a four-week low as imports slowed across major supply sources. The decline reflects tightening regional balances and shifting trade flows in Asia’s fuel oil market.
According to data from Enterprise Singapore, total fuel oil stockpiles slipped to around 18.29 million barrels for the week ending October 23, compared with 19.9 million barrels a week earlier. The drawdown was mainly attributed to reduced inflows from typical suppliers, including Malaysia and the United Arab Emirates, alongside limited arrivals from Western regions.
While imports dropped, the report highlights that Singapore’s fuel oil exports also eased during the same period, suggesting a narrower trade window for regional redistribution. This trend aligns with recent shifts in arbitrage movements, as market participants assess freight economics and the relative strength of alternative hubs.
On the demand side, bunker fuel activity remained steady, supported by consistent vessel calls and stable marine fuel consumption levels. However, analysts pointed out that lower import arrivals could keep stock levels under pressure if demand sustains its current pace.
The overall market sentiment in Singapore’s fuel oil complex remains cautious. Traders are closely monitoring global crude trends, shipping schedules, and the pace of refinery operations that influence regional supply availability. As a key global bunkering hub, Singapore continues to serve as a barometer for regional fuel oil dynamics, where even modest import fluctuations can have noticeable effects on inventories and price movements.
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Source: S&P Global Commodity Insights
