Residual fuel oil stocks rebounded at key trading hub Singapore, while weekly net imports averaged higher for June so far, official data showed on Wednesday.

Onshore fuel oil stocks climbed 10% to 20.39 million barrels (3.21 million metric tons) in the week to June 27, after sliding to four-week lows last week, Enterprise Singapore data showed.
Weekly net imports, calculated by subtracting total exports from total imports, were stable week-on-week at about 738,000 tons.

The net imports averaged 666,000 tons/week in June so far, higher from 442,000 tons/week in May.

Kuwait was the top origin for Singapore’s fuel oil imports this week, with net import volumes at 290,000 tons.

Most fuel oil exports from Kuwait’s newest Al Zour refinery were either headed to East of Suez oil hubs Singapore and Malaysia, or remained within the Middle East, shipping records showed.

Meanwhile, Bangladesh overtook China as the top recipient for fuel oil exports out of Singapore, with export volumes at 43,000 tons.

The South Asian country still bought less fuel oil compared to last year and instead opted for other alternatives for power generation, trade sources said.

Singapore’s spot fuel oil market had cooled off recently, with cash differentials easing week-on-week.

Spot differentials for 0.5% very-low sulphur fuel oil have softened for six consecutive trading sessions after a short-lived rally, while 180-cst high sulphur fuel oil traded into steeper discounts to Singapore quotes on Wednesday.

Source: Reuters reported by Jeslyn Lerh and edited by Louise Heavens