Onshore fuel oil stockpiles at key trading hub Singapore edged lower for three consecutive weeks, despite an uptick in net imports, data showed.

Residual fuel inventories were at 19.39 million barrels (about 3.05 million metric tons) in the week to May 14, hitting two-month lows, Enterprise Singapore data showed.

Some improvement in Singapore bunker demand supported the drawdown this week, trade sources said.
Total fuel oil exports out of the tanks also climbed week-on-week, breaching 500,000 tons, with most volumes heading for China.

Meanwhile, total imports recovered to nearly 850,000 tons, following a sharp drawdown in the previous week. Most of the week’s imports came from Brazil, Iraq, and the United States.

The region continues to be amply supplied despite recent weekly declines in onshore inventories, sources said.

Asia is set to receive higher arbitrage volumes this month, boosted by arrivals from Brazil and Mexio, based on estimates from LSEG Oil Research this week.

Spot differentials for high-sulphur fuel oil held in discounts to cargo quotes, though differentials for low-sulphur fuel oil showed some recovery in recent trading sessions.

Source: Reuters