SINGAPORE, Dec 8 (Reuters) – Residual fuel oil stocks at Singapore’s main trading hub rose for the second consecutive week as weekly net imports continued to strengthen, official data showed on Thursday.
Onshore fuel oil inventories rose 2% to 20.31 million barrels (3.20 million tonnes) in the week ended Dec. 7, hitting a three-week high, according to Enterprise Singapore data. .
The increase in weekly inventory levels came amid a slight rise in net fuel oil imports, which gained 18% week-on-week to 516,000 tonnes.
The main net import volumes continued to come from Malaysia at 362,000 tonnes, as in previous weeks. Next come Brazil with 160,000 tonnes and the United Arab Emirates with 138,000 tonnes.
Arbitrage fuel oil supplies poured in steadily in the Greater Asia region, while exporters in Asia also offered steady supply volumes in December tenders.
Meanwhile, the top destinations for net fuel oil exports were South Korea with 90,000 tons, China with 78,000 tons and Bangladesh with 21,000 tons, according to data from Enterprise Singapore.
Spot cash spreads for fuel oil in Singapore have come under pressure in recent sessions amid steady arrivals and stock builds.
Cash spreads of 380 cst for high sulfur fuel oil have trended lower since late November, while cash spreads of 0.5% for ultra low sulfur fuel oil have been trapped in a range close during the same period.
(Enterprise Singapore data)
Reporting by Jeslyn Lerh; Editing by Vinay Dwivedi
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