Singapore’s fuel oil inventories rise amid higher net imports

Singapore’s residual fuel oil stocks have averaged 3% higher so far this month than across February, Enterprise Singapore’s latest data shows.

Changes in monthly average Singapore stocks from February to March (so far):

• Residual fuel oil stocks up 710,000 bbls to 23.72 million bbls
• Middle distillate stocks down 1.20 million bbls to 7.27 million bbls

Singapore’s fuel oil stocks have risen above 23 million bbls, amid a 2% increase in net fuel oil imports so far in March. Both imports and exports have increased during the period, with imports growing by 138,000 bbls and exports rising by 62,000 bbls.

Most of Singapore’s fuel oil imports this month have originated from Russia (36%), followed by the UAE (11%) and Brazil (9%), according to cargo tracker Vortexa. On the export side, the majority of fuel oil cargoes have been shipped to China (32%) and Malaysia (29%), while India (14%) has also taken a notable share.

In contrast, Singapore’s middle distillate inventories have declined by 14% this month to 7.27 million bbls, reaching multi-year lows.

Changes in Singapore fuel oil trade from February to March (so far):

• Fuel oil imports up 138,000 bbls to 5.77 million bbls
• Fuel oil exports up 62,000 bbls to 2.44 million bbls
• Fuel oil net imports up 76,000 bbls to 3.33 million bbls

Meanwhile, prompt bunker supply remains tight in Singapore. Lead times for VLSFO in Singapore have extended to around 12–16 days, up from 7–11 days last week. LSMGO supply has tightened further, with recommended lead times stretching to 13–17 days, compared with 4–11 days in the previous week, according to a source.

HSFO availability has also tightened, with lead times increasing to 11–15 days, from 8–11 days a week earlier.

By Tuhin Roy

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