SINGAPORE: Singapore’s residual fuel oil inventories rose 3% in the week ended Feb 26 and hit their highest in more than nine months amid a surge in net import volumes and sluggish marine fuel demand at the world’s top bunkering hub, official data showed on Thursday.
Onshore fuel oil stocks rose by 740,000 barrels (about 117,000 tonnes) to 24.971 million barrels, or 3.932 million tonnes, from the previous week, data from Enterprise Singapore showed.
This came as net import volumes jumped to a six-week high of 1.293 million tonnes, up by 255% from the previous week and well above the 2020 weekly average of 929,000 tonnes. Weekly figures, however, are volatile.
Residual fuel stocks were 15% higher than the year-ago period.
Demand for Singapore bunkers has fallen this month, weighed down by seasonally weaker demand during the Chinese Lunar New Year holiday and low shipping activity due to the spread of coronavirus.
Reflecting the sluggish shipping demand, tanker charter rates have plunged more than 80% as the virus outbreak slams the brakes on major economies, costing the sector hundreds of millions of dollars in lost business.
Singapore’s fuel oil net exports to Hong Kong topped the list for the week at 38,000 tonnes, followed by Bangladesh with 19,000 tonnes and Vietnam with 10,000 tonnes.
The largest net imports into Singapore were Malaysia’s 620,000 tonnes, a five-week high, followed by Iraq with 145,000 tonnes, Saudi Arabia with 92,000 tonnes and Taiwan with 70,000 tonnes.
Singapore fuel oil stock have averaged 22.715 million barrels, or 3.577 million tonnes, per week so far this year. – Feb 27, 2020, Reuters
