SINGAPORE DATA: Residual fuel stocks slump to over 6-month low amid higher exports

Singapore's commercial stockpiles of heavy distillates slipped for a sixth consecutive week to 19.17 million barrels during the week ended May 17, Enterprise Singapore data released late May 18 showed, amid higher fuel oil exports.

The stocks were at their lowest level since Nov. 2 when they were at 18.9 million barrels. This week's inventories, however, were 2.2% higher compared with the corresponding week in 2022, the data showed.

Weekly residual fuel inventories in Singapore averaged at about 21.4 million barrels so far in 2023, compared with a weekly average of 20.9 million barrels in 2022, the data showed.

Singapore exported 356,214 mt of fuel oil in the week to May 17, about 30% higher compared with 274,068 mt in the week to May 10, the Enterprise Singapore data showed.

Singapore's exports to Bangladesh more than doubled on week to 81,818 mt in the week to May 17, up from 35,885 mt in the previous week, the data showed.

Bangladesh, however, could stop receiving petroleum products from some suppliers as the country's primary oil importer Bangladesh Petroleum struggles to clear pending dues amid sharp currency devaluation.

Singapore also exported 89,966 mt fuel oil to South Korea in the week to May 17 for the first time in five weeks, while exports to China dropped 64% on week to 38,101 mt in the week to May 17, the Enterprise Singapore data showed.

Meanwhile, Singapore's fuel oil import volume climbed 62.4% on the week to 896,065 mt in the week to May 17 with fuel oil inflows from Asian suppliers making up 44.5% of the total volume at 399,022 mt, the data showed.

There were no imports from Japan or South Korea in the latest week, while the city-state imported 39,869 mt fuel oil from Taiwan in the week to May 17, compared with none in the preceding two weeks, the data showed.

Singapore also imported 27,429 mt fuel oil from Pakistan in the week to May 17, compared with none in the previous week.

Pakistan's oil refineries are planning to export around 100,000 mt of fuel oil in May to reduce stocks at their terminals and help run units at desired capacities.

Fuel oil imports from the Middle East jumped to 276,882 mt in the week to May 17, the highest weekly inflows from the region in the last 11 weeks. Of these shipments, 140,542 mt came from Iraq and the rest from the United Arab Emirates, the data showed.

Singapore also imported about 1,762 mt fuel oil from Netherlands in the week to May 17, compared with none the week before, while imports from Russia soared to 81,947 mt in the week ended May 17, up from 18.958 mt in the week ended May 10, the data showed.

Singapore's inventory data counts only stocks at onshore terminals. Enterprise Singapore describes heavy distillates as "residues," which include cracked and straight run fuel oil and low sulfur waxy residue.

Bunker demand maintains steady momentum

Healthy fuel oil demand in the end-user market over the recent weeks at the world's largest bunker hub of Singapore, has extended into the second half of May too and steadily drawing down inventories, according to local traders.

Bunker suppliers expect prompt barge availabilities for low sulfur fuel oil to stay capped for the time being and buoy delivered premiums for early refueling dates, amid busy schedules delivering on commitments previously fixed during the first half of May.

As the international crude oil prices were trending mostly higher across the week ended May 19, the overall stream of inquiries slowed as some buyers deferred requirements, traders said.

"Demand is still good nevertheless... LSFO barge schedules also average and okay for now," a Singapore-based trader said May 19, adding that cargo availability is not yet seen problematic in the downstream market.

Still, lead times for LSFO deliveries were seen as prompt as two to seven days away, with more slots for earlier refueling dates compared to 1H May, according to Singapore-based bunker suppliers.

The Platts Singapore-delivered marine fuel 0.5%S bunker premiums over the benchmark FOB Singapore Marine Fuel 0.5%S cargo values slipped to average $20.55/mt May 15-8, from $26.21/mt during the previous week ended May 12, according to data from S&P Global Commodity Insights.

High sulfur fuel oil bunker demand has largely remained stable, while stockpiles were also seen ample for downstream requirements, Singapore-based traders said.

"Inquiries were fewer these last couple of days, it was quite quiet," a Singapore-based trader said May 19, adding that HSFO demand is still seen reasonable.

According to bunker suppliers, buyers are mostly also able to refuel HSFO within lead times of approximately six days away.

The Singapore-delivered 380 CST HSFO bunker premiums over the FOB Singapore 380 CST HSFO cargo assessments softened to an over three-month low of $14.98/mt May 18, down 11 cents/mt on the day, and lowest since Feb. 8 when it was assessed at $14.37/mt, S&P Global data showed