Residual fuel oil stocks at key trading hub Singapore eased for a second straight week, while net imports nearly halved, official data showed on Thursday.

Onshore fuel oil stocks fell 3% to 17.81 million barrels (2.80 million metric tons) in the week to July 19, data from Enterprise Singapore showed.

Weekly net imports, calculated by subtracting total exports from total imports, nearly halved week-on-week at 563,000 metric tons.

Kuwait was the top origin of Singapore’s fuel oil imports in the week, with net import volumes at 144,000 metric tons.

The market has been pricing in expectations of higher Kuwaiti supplies to the east as it ramps up its Al Zour refinery and exports.

Reflecting a bearish supply outlook, Singapore cash differentials for fuel oil have slipped into discounts to cargo quotes since last week, closing on Wednesday at more than two-year lows.

Meanwhile, South Korea became the top destination for fuel oil exports out of Singapore in the week, with volumes of 139,000 metric tons.

Source: Reuters reported by Jeslyn Lerh and edited by Sohini Goswami