Onshore fuel oil stockpiles in Singapore eased for a second consecutive week but held above 25 million barrels, averaging higher month-on-month, official data showed on Thursday.

Inventories for residual fuels fell to 25.41 million barrels (about 4 million metric tons) in the week to September 17, logging a three-week low and down 4.2% from the previous week, showed Enterprise Singapore data.

Imports totalled about 600,000 tons during the week, sliding 20% week-on-week. Most of the inflows came from neighbouring storage hub Malaysia.

Meanwhile, exports from the storage tanks totalled about 265,000 tons, up 64% week-on-week, with most volumes bound for Hong Kong.

Spot differentials for low-sulphur fuel oil recovered in recent sessions, flipping from discounts to premiums.

Total supply to Asia may dip slightly this month amid softer western arbitrage arrivals, according to LSEG Oil Research.

Source: Reuters