SINGAPORE DATA: Fuel oil stockpiles plunge to over 8-month low as imports dwindle

Singapore's commercial inventories of heavy distillates dropped 14.7% week over week to a more than eight-month low of 19.9 million barrels in the week ended Jan. 28, showed Enterprise Singapore data released late Jan. 29, as imports into the world's largest bunkering hub shrank for a second straight week.

The fuel oil stockpiles, which have now drawn down for two weeks in a row, were at their lowest since May 14, 2025, when they stood at 19.4 million barrels, according to Enterprise Singapore data compiled by Platts, part of S&P Global Energy. This week's stocks, however, were 9.9% higher compared with the corresponding week in 2025, according to the data.

The weekly residual fuel stocks in Singapore have averaged 23.5 million barrels in the first four weeks of 2026, compared with 22.8 million barrels in 2025 and 19.7 million barrels in 2024, according to the data.

Singapore's fuel oil imports decreased to 502,612 mt in the week to Jan. 28, dropping 47.6% from the preceding week, while inflows from Asian suppliers dropped 28.2% week over week to 311,405 mt, which constitutes a bulk of nearly 62% of the total volume of inflows into the world's largest bunkering hub during the week, the data showed.

Although the city-state's fuel oil imports from neighboring Malaysia jumped 46% from the previous week to 183,395 mt in the week ended Jan. 28, there were no imports from Japan, Thailand, or Kazakhstan in the latest week, the data showed.

There were no fuel oil imports from Russia for a second straight week, while Singapore's imports from the Middle East slumped nearly 63% week over week to 80,051 mt, all of which came from Bahrain, according to Enterprise Singapore data.

Fuel oil imports from Europe slipped 13.6% week over week to 111,156 mt in the week ended Jan. 28, and the entire volume came from Estonia, the data showed.

Meanwhile, Singapore's fuel oil exports dropped 41.8% week over week to 282,045 mt in the week to Jan. 26, partly because shipments to China shrank 45.2% week over week to 135,396 mt, the data showed.

Singapore also exported 28,589 mt of fuel oil to Vietnam and about 34,700 mt to Papua New Guinea in the latest week to Jan. 28, but there were no exports to Australia, Bangladesh, or Sri Lanka in the latest week, 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 healthy

Anticipated strength in demand for LSFO in the spot market around the world's largest bunkering hub of Singapore, alongside tightened supply conditions, has kept valuations firm of late, traders said.

Despite the underlying firmness, LSFO ex-wharf premiums for front-month February loadings softened to $4.55/mt on Jan. 29, snapping two consecutive daily gains seen since Jan. 26.

Limited blending activity, stemming from delays in the arrival of blendstock component cargoes, is expected to constrain near-term availability.

LSFO ex-wharf premiums for front-month February loadings are seen holding within a mid to high-single digit range, supported by tightening supply fundamentals and steady bunkering demand, traders said.

The Platts-assessed Singapore-delivered 0.5%S marine fuel bunker premium over FOB Singapore Marine Fuel 0.5%S cargo values averaged $24.36/mt over Jan. 26-29, up from a $16.48/mt average in the prior week.

Meanwhile, moderate HSFO spot demand capped further upside in bunker premiums, though early barging slots were reportedly filling quickly as buyers moved to secure supplies ahead of the Lunar New Year.

Platts assessed the Singapore-delivered 380 CST HSFO bunker premium over FOB Singapore 380 CST HSFO cargo values at an average of $13.94/mt over Jan. 26-29, compared with a $16.48/mt average in the previous week.