Singapore fuel oil inventories slip further to three-month lows
Inventories down for third straight week
Market backwardation remains strong
China becomes top destination for exports
By Jeslyn Lerh
SINGAPORE, Oct 12 (Reuters) -Residual fuel oil stocks at key trading hub Singapore slipped to three month-lows in the week to Oct. 11, logging a third straight weekly decline, official data showed on Thursday.
Onshore fuel oil stocks STKRS-SIN fell 7.2% to 17.97 million barrels (2.83 million metric tons), data from Enterprise Singapore showed. O/SING1
The fall in inventories came despite a recovery in weekly net imports at 486,000 tons,climbing by nearly four times compared with last week.
A strong market backwardation continued to spur selling interest as such a market discourages storage, with front-month prices higher than prices in the future months.
The prompt-month backwardation for 0.5% very low sulphur fuel oil remained wide after hitting a four-month high in early October, LSEG data showed, with the balance-October/November timespread pegged at $20 a ton on Thursday. LFO05FSGSMc0
Meanwhile, Malaysia was the top origin for Singapore's net fuel oil import volumes at 263,000 tons, while China was the top destination for net fuel oil export volumes at 100,000 tons.
Oct 11, Fuel oil (in tons) | Total Imports | Total Exports | Net Imports |
AUSTRALIA | 0 | 37,647 | -37,647 |
BRAZIL | 51,772 | 0 | 51,772 |
CHINA | 0 | 100,048 | -100,048 |
HONG KONG | 0 | 44,879 | -44,879 |
INDIA | 69,145 | 0 | 69,145 |
INDONESIA | 30,788 | 0 | 30,788 |
JAPAN | 0 | 29,943 | -29,943 |
KOREA | 0 | 59,643 | -59,643 |
KUWAIT | 60,033 | 0 | 60,033 |
MALAYSIA | 287,670 | 24,498 | 263,172 |
NETHERLANDS | 29,853 | 0 | 29,853 |
NEW CALEDONIA | 0 | 54,998 | -54,998 |
NEW ZEALAND | 0 | 4,028 | -4,028 |
RUSSIA | 98,844 | 0 | 98,844 |
TAIWAN | 18,531 | 0 | 18,531 |
THAILAND | 0 | 37,970 | -37,970 |
TÜRKIYE | 36,656 | 0 | 36,656 |
UNITED ARAB EMIRATES | 242,348 | 0 | 242,348 |
UNITED KINGDOM | 75,774 | 0 | 75,774 |
VIETNAM | 0 | 0 | 0 |
TOTAL FOR 27101979 | 1,001,413 | 393,655 | 607,759 |
(Data from Enterprise Singapore)
Reporting by Jeslyn Lerh; Editing by Eileen Soreng
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
