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SINGAPORE DATA: Residual fuel stocks rise 4% on higher imports, lower exports
10th June 2022 10:36 GMT

 

Singapore's residual fuel stocks rose 4.1% week on week to 21.422 million barrels in the week to June 8 amid higher fuel oil imports and lower exports, Enterprise Singapore data showed.

 

Singapore's fuel oil imports rose 6.6% week on week to 1.23 million mt over June 2-8.

Singapore imported 102,715 mt of fuel oil from Russia over the week, with inflows from Russia being recorded for the first time since the week ended April 27, according to the data. Market sources also said Asia could become one of the key destinations for Russian fuel oil cargoes because of sanctions that prevent flows to the US and the EU.

Imports from Asia accounted for 52% of the total imports. Malaysia was the biggest fuel oil supplier to Singapore over June 2-8 with 482,695 mt, nearly double 243,234 mt in the previous week.

Bunker suppliers in Singapore typically store blending components and perform offshore blending operations in floating storages at Tanjung Pelepas in Malaysia before transferring the finished product to onshore terminals in Singapore.

Imports from the Americas stood at 187,978 mt in the week to June 8, down 33.7% from the prior week, the data showed. The bulk of the imports came from Brazil, which sent 151,225 mt to Singapore, down 11.3% from the previous week.

Imports from the Middle East stood at 137,643 mt in the week to June 8, down 34.9% week on week, the data showed.

Singapore's fuel oil exports declined 14% on the week to 219,284 mt over June 2-8. Exports to Bangladesh, the biggest taker of Singapore fuel oil, came in at 81,556 mt over June 2-8, up 138.9% week on week.

Malaysia, the second largest taker of Singapore fuel oil, received 68,780 mt over June 2-8, up 36.3% from the prior week.

 

Steady bunker demand

 

Bunker demand has been steady despite high prices. Marine fuel 0.5%S bunker supply has been tight due to limited supply of cutter stocks to produce on-spec bunker fuel, said fuel oil traders.

Market participants were divided on the supply availability of low sulfur fuel in Singapore. While some were convinced that the tight supply situation would start to ease in the second half, others felt this was not the case. "Imports for June are not significantly higher than May and demand in Singapore is steady," said a trader.

The delivered bunker premiums have started to taper off, correcting the all-time high seen in early June. The Singapore-delivered marine fuel 0.5%S premium to benchmark Singapore marine fuel 0.5%S cargo hit an all-time high of $106.97/mt on June 3, but has retreated progressively to $77.39/mt on June 9.

The Singapore-delivered marine fuel 0.5%S premium averaged $90.47/mt over the period, down from the previous week's average of $102.80/mt. Weakness in the downstream bunker market also tracked losses in the upstream cargo market, where the cargo premium fell to $63.53/mt on June 9, down from $73/mt on June 3, S&P Global data showed.

The delivered premium for 380 CST high sulfur bunker fuel averaged $12.81/mt in the week to June 8, down from $13.82/mt in the previous week, according to the data.


Bunkerworld .,
10th June 2022 10:36 GMT