Onshore fuel oil inventories in Singapore tanks continued to hold above last month's average levels, with non-Middle Eastern imports firming in the week, data showed. Residual fuel stockpiles were at 24.04 million barrels (about 3.79 million tonnes) in the week to March 18, Enterprise Singapore data showed on Thursday.
Stockpiles maintained higher in March so far versus an average of 23 million barrels a week in February. Fuel oil imports soared above 1.35 million tonnes in the week to March 18, more than doubling week-on-week, per Enterprise Singapore.
Most of the imports originated from Brazil, Indonesia and Russia. Traders in Singapore were looking to secure supply from non-Middle Eastern regions as the Strait of Hormuz stayed shut amid the ongoing conflict.
Asia's fuel oil imports from Russia are set for a record high this month after the US eased sanctions on Russian barrels. Lower demand for marine fuel at Singapore also capped drawdowns in inventories as some shipowners looked to alternative ports with cheaper prices, market sources said.
Meanwhile, fuel oil exports fell 12.2 per cent to about 223,000 tonnes, with most volumes headed for Philippines, Bangladesh and Hong Kong in the week. Spot differentials for both high-sulphur fuel oil and low-sulphur fuel oil remained strong this week.
(Reporting by Jeslyn Lerh; Editing by Sumana Nandy)
