Singapore fuel oil stockpiles rebound after sharp draw last week

SINGAPORE, March 13 (Reuters) - Singapore onshore fuel oil stockpiles rebounded following a sharp draw last week, though holding below typical averages, data showed on Thursday.

Residue inventories STKRS-SIN were at 17.92 million barrels (2.82 million tons) in the week to March 12, climbing 15.9% from the previous week, based on Enterprise Singapore data. O/SING1 This still compared lower than typical averages of about 20 million barrels per week.

A steep balance-month backwardation is encouraging of drawdowns this month, trade sources said. A backwardated market structure means investors can sell their oil at a higher price in the market versus future months.

Meanwhile, direct imports from Russia recovered this week, after an absence recorded for five straight weeks, the Enterprise data showed.

Russian imports totalled more than 331,000 tons, making it the top fuel oil supplying country of the week.

The United Arab Emirates and Iraq were the next two largest suppliers following Russia.

Strong prices of high-sulphur fuel oil (HSFO) have drawn more cargoes over from these countries, trade sources said.

As for exports, most of the volumes flowing out of Singapore tanks were headed for China, Hong Kong and Bangladesh in the same week.

Asia's HSFO benchmarks have extended strength this month, with spot premiums hitting their highest in one and a half years. FUEL/A

(Data from Enterprise Singapore)