Singapore fuel oil stockpiles jump amid lukewarm demand, ample supply
By Jeslyn Lerh
SINGAPORE, Aug 7 (Reuters) - Onshore fuel oil stockpiles in trading hub Singapore rose to a more than seven-month high in the week to August 6, latest data showed, as some sellers struggled to clear stocks due to lukewarm demand and plentiful supplies.
The inventories have been hovering above typical averages for 12 consecutive weeks, weighing on fuel oil prices and margins. Fuel oil is a product that is mostly used for refuelling ships or as a feedstock in some refineries.
Singapore residual fuel inventories STKRS-SIN rose to 26.32 million barrels (4.14 million metric tons) in the week to Aug. 6, based on Enterprise Singapore data, a level unseen since mid-December.O/SING1
A surge in incoming supplies last month largely contributed to the build, analysts said.
"The inability of the market to clear heavy July arrivals pushed stocks higher. If overall sales continue to remain muted, we may see further downward pressure on prices," said Emril Jamil, a senior analyst at LSEG Oil Research.
Fuel oil arrivals hit a four-month high of more than 6 million tons in July, based on LSEG's estimates, while August volumes are expected to taper off just slightly, but will still remain higher than average.
"Fuel oil cargoes that discharged in Asia rose month-on-month in July, resulting in the stock build. It's unlikely bunker demand could increase and absorb that amount of higher arrivals," said Ivan Mathews, head of APAC analysis at Vortexa.
Some fuel oil traders said there was no particularly bullish driver in sight for the Asia market in the near term, with total inventories remaining high and demand average.
Asia high-sulphur cargo differentials have been holding steady in discounts since July, while premiums for low-sulphur cargoes fell in recent trading sessions. FUEL/A
Singapore's onshore net fuel oil imports rose 38% week-on-week, exceeding 690,000 tons in the week to Aug. 6, Enterprise Singapore data showed.
Week to Aug. 6, Fuel oil (in metric tons) | Total Imports | Total Exports | Net Imports |
AZERBAIJAN | 34,832 | 0 | 34,832 |
BANGLADESH | 0 | 20,484 | -20,484 |
BRAZIL | 158,245 | 0 | 158,245 |
CHINA | 1 | 0 | 1 |
DENMARK | 40,045 | 0 | 40,045 |
ESTONIA | 44,103 | 0 | 44,103 |
INDIA | 35,841 | 409 | 35,432 |
INDONESIA | 91,927 | 4 | 91,923 |
IRAQ | 48,158 | 0 | 48,158 |
KOREA | 18,480 | 0 | 18,480 |
MALAYSIA | 185,103 | 24,743 | 160,360 |
NETHERLANDS | 32,826 | 0 | 32,826 |
PHILIPPINES | 0 | 16,958 | -16,958 |
SEYCHELLES | 0 | 0 | 0 |
TAIWAN | 30,570 | 0 | 30,570 |
TURKMENISTAN | 29,380 | 0 | 29,380 |
UNITED STATES | 0 | 0 | 0 |
VIETNAM | 5,681 | 0 | 5,681 |
TOTAL | 755,192 | 62,597 | 692,595 |
(Data from Enterprise Singapore)
Related Articles
Investing in Clean Energy
TradingKey - Not so long ago, clean energy was relegated to a niche, a corner for subsidies, early markets, and greens. Now it's at the center of global economic thought. Governments, business, and consumers are driving a structural transformation from fossil fuels to renewables. The roofs are toppe
Investing in Luxury & Experiential Consumption
Niche assets like data centers, logistics, healthcare, and cold storage thrive on structural drivers, not traditional property cycles Specialized real estate benefits from secular trends like digitalization, demographics, and supply chain innovation, making demand resilient and less cycle-sensitive
Oracle’s FY2026 Q1 Preview: Will OpenAI Contract Spark a Broadcom-Like Stock Surge?
TradingKey - As analysts raise targets and expectations, could Oracle’s stock replicate the post-earnings rally seen at Broadcom following its OpenAI-related contract announcement?
U.S. August CPI Preview: Persistent Rise in Inflation, What Impact on Rate Cuts? And on US Stocks?
TradingKey - On 11 September 2025, the U.S. will publish August CPI data. Consensus forecasts indicate a 0.3% month-over-month increase for both headline CPI and core CPI. As a result, headline CPI year-over-year may climb to 2.9%, up from 2.7%
Fed to Cut Rates: All Asset Prices Up!
TradingKey - The Federal Reserve is almost certain to restart its interest rate cut cycle on 17 September this year. After in-depth research, we have concluded that cryptocurrencies, the broader U.S. stock market, and short-term U.S. Treasury bonds will all go up.
