Singapore fuel oil inventories remain stable

Singapore’s residual fuel oil stocks have held broadly steady in February so far, according to Enterprise Singapore.

Changes in monthly average Singapore stocks from January to February (so far):

• Residual fuel oil stocks down 100,000 bbls to 23.45 million bbls
• Middle distillate stocks up 730,000 bbls to 9.13 million bbls

Singapore’s fuel oil inventories have risen to above 23 million bbls, despite a 4% decline in net fuel oil imports so far in February. During the same period, fuel oil imports increased by 540,000 bbls, while exports climbed by a larger 678,000 bbls.

According to cargo tracker Vortexa, the majority of fuel oil arrivals this month originated from Nigeria (13%), followed by Brazil (10%) and Kuwait (10%). On the export side, China accounted for 47% of Singapore’s fuel oil shipments, with Malaysia making up 17%.

Meanwhile, middle distillate stocks in Singapore have also increased, averaging 9% higher so far this month.

Changes in Singapore fuel oil trade from January to February (so far):

• Fuel oil imports up 540,000 bbls to 5.90 million bbls
• Fuel oil exports up 678,000 bbls to 2.66 million bbls
• Fuel oil net imports down 138,000 bbls to 3.23 million bbls

In Singapore, VLSFO supply remains tight, with recommended lead times of 9–13 days, slightly shorter than last week’s 10–18 days. HSFO availability is also limited, with advised lead times of 7–18 days. LSMGO supply is more variable, with lead times ranging from 2–10 days, compared with 3–5 days last week.

The continued tightness stems from a combination of factors, including uneven lead times among suppliers, elevated premiums for prompt stems, heavily booked loading schedules, and advance procurement ahead of the Chinese New Year holidays, which has brought demand forward.

By Tuhin Roy

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