SINGAPORE — Onshore fuel oil inventories in Singapore rose for a second consecutive week, driven by strong imports from the Middle East, according to data released Thursday by Enterprise Singapore.
As of April 16, residual fuel stocks stood at 22.9 million barrels, or about 3.6 million metric tons. This marks a 3.9% increase from the previous week and the highest level recorded in 17 weeks. Stockpiles have now stayed above typical weekly averages since mid-March.
Middle East Drives Supply Surge
The largest contributors to the supply were Iraq, the United Arab Emirates, and Kuwait. Last month, the volume of Middle Eastern fuel arriving in Asia surged, while shipments from the West and other Asian sources also strengthened, according to ship-tracking data.
Traders said high prices for high-sulfur fuel oil (HSFO) had previously encouraged more inflows. However, shipments in April have slightly decreased compared to March.
Exports Mainly Head to China and the Philippines
Fuel oil exports from Singapore’s onshore tanks were mainly directed to China and the Philippines, excluding volumes moved to Malaysian storage facilities.
The HSFO spot market has come under pressure in recent days, while the low-sulfur fuel oil (LSFO) market has remained stable, according to market data.
Demand Slows, Stocks Build
“Singapore’s onshore residual stocks have been above 3 million tons since mid-March, buoyed by strong arrivals in March and softer maritime fuel demand,” said Emril Jamil, a senior analyst at LSEG Oil Research.
He added that the rise in inventories, combined with weaker demand, has lowered ex-wharf premiums for high-sulfur bunker fuel.
The continued build-up in inventories signals a cautious outlook for bunker fuel margins, as suppliers monitor both demand trends and regional supply flows.
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