SINGAPORE DATA: Residue stocks dip 2% on week as exports, bunker demand rise
19th November 2021 06:33 GMT

Singapore's residual fuel stocks dipped 1.8% week on week to 21.356 million barrels, or 3.36 million mt, in the week ended Nov. 17, Enterprise Singapore data released Nov. 18 showed, amid a rise in bunker fuel demand in Asia.

Fuel oil exports rose 22% week on week to 431,456 mt over Nov. 11-17, with 116,193 mt supplied to Hong Kong in the week after none the week before, and 130,036 mt to Bangladesh, surging from 48,755 mt the previous week, the data showed.

Hong Kong imports marine fuel 0.5%S and high sulfur fuel oil for bunker from Singapore, while Bangladesh imports 180 CST high sulfur fuel oil for power generation.

Meanwhile, fuel oil imports rose 18.5% week on week to 1.11 million mt, due mainly to a surge to 317,846 mt arriving from the Americas over Nov. 11-17, up from 68,829 mt the week before.

Fuel oil imports from Brazil surged 216% week on week to 217,363 mt, and from the US rose to 48,602 mt from none the week before. Brazil is the largest low sulfur fuel oil component supplier to Asia, market sources said.

Bunker premiums rise

The volume of prompt inquiries for Singapore-delivered marine fuel 0.5%S remained robust in the week, lifting bunker premiums, traders said.

The premium of Singapore-delivered marine fuel 0.5%S to the benchmark Singapore Marine Fuel 0.5%S cargo assessments averaged $16.43/mt over Nov. 11-17, up from $14.12/mt the week before, S&P Global Platts data showed.

Firm prompt bunker demand has prompted suppliers to buy spot ex-wharf low sulfur fuel oil cargoes to get around berthing delays at terminals around Singapore, market sources said.

"Sellers of ex-wharf [marine fuel 0.5%] are seeing good demand on a spot basis lately and are kept busy scheduling loadings. The incremental demand for spot ex-wharf cargoes, on top of usual term contractual quantities, is bound to cap inventories," a Singapore-based bunker supplier said.

The pickup in freight traffic in the current quarter was impacting barging schedules and boosting in-port bunker demand, industry sources said.

Bunkerworld ,
19th November 2021 06:33 GMT