Singapore’s fuel oil inventories dip 2% amid lower net imports

Singapore’s residual fuel oil stocks have averaged 2% lower so far in August than across July, Enterprise Singapore’s latest data shows.

Changes in monthly average Singapore stocks from July to August (so far):

• Residual fuel oil stocks down 350,000 bbls to 18.62 million bbls
• Middle distillate stocks down 400,000 bbls to 9.61 million bbls

Singapore’s fuel oil inventories have slipped below 19 million bbls, amid a significant 41% decrease in the port’s net fuel oil imports so far this month. Imports fell by 1.05 million bbls, while exports rose by 396,000 bbls over the same period.

Brazil (17%) was the largest source of fuel oil imports, followed by the UAE (8%) and Russia (7%), according to Vortexa cargo tracking data. On the export side, China (34%) was Singapore’s biggest destination, followed by Malaysia (27%) and Japan (12%).

Meanwhile, Singapore’s middle distillate inventories have averaged 5% lower so far this month.

Changes in Singapore fuel oil trade from July to August (so far):

• Fuel oil imports down 1.05 million bbls to 4.21 million bbls
• Fuel oil exports up 396,000 bbls to 2.09 million bbls
• Fuel oil net imports down 1.45 million bbls to 2.12 million bbls

Singapore’s VLSFO availability remains tight, with supplier lead times varying widely. While some suppliers recommend around seven days, others are advising lead times of up to 19 days, compared with 7-13 days last week. A source attributed the tighter availability to reduced supply from suppliers and shortages of blending components.

HSFO lead times are currently at 6-12 days, broadly stable from 6-13 days a week earlier. Meanwhile, LSMGO availability has also tightened, with lead times rising to 4-9 days from 2-8 days last week.

By Tuhin Roy

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