Singapore’s fuel oil stocks increase amid higher net imports

Singapore’s residual fuel oil stocks have averaged 10% higher so far in July than across June, Enterprise Singapore’s latest data shows.

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

• Residual fuel oil stocks up 1.80 million bbls to 19.25 million bbls
• Middle distillate stocks up 1.04 million bbls to 8.98 million bbls

Singapore's fuel oil inventories have climbed above 19 million bbls, amid a sharp 49% increase in net fuel oil imports so far in July. Both imports and exports have risen during the month, with imports increasing by 1 million bbls and exports edging up by 17,000 bbls.

Brazil (13%) has been the largest source of Singapore's fuel oil imports this month, followed by Saudi Arabia (12%) and India (11%), according to cargo tracker Vortexa. On the export side, China (40%) has remained the biggest destination, followed by South Korea (14%) and Indonesia (8%).

Meanwhile, Singapore's middle distillate inventories have increased by 13% so far this month, reaching 8.98 million bbls.

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

• Fuel oil imports up 1 million bbls to 4.94 million bbls
• Fuel oil exports up 17,000 bbls to 1.94 million bbls
• Fuel oil net imports up 985,000 bbls to 3 million bbls

Meanwhile, VLSFO availability in Singapore remains tight, with recommended lead times at 14-19 days, largely unchanged from last week. Supply tightness persists because Singapore's fuel oil inventories have yet to recover to pre-conflict levels, while cargo arrivals remain constrained due to renewed US-Iran hostilities disrupting traffic through the Strait of Hormuz.

According to the Enterprise Singapore data, fuel oil stocks dropped below 18 million bbls in June from more than 23 million bbls in March. Inventories have remained below 20 million bbls so far this month.

HSFO availability also remains tight, with recommended lead times of 9-13 days, compared with 10-12 days a week ago. LSMGO supply has tightened further, with lead times widening to 9-11 days from 6-9 days last week.

By Tuhin Roy

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