Onshore fuel oil stockpiles in the Singapore oil storage hub climbed for a third consecutive week, reaching their highest level in three months, data showed on Thursday.
The inventories rose two per cent week-on-week to 26.06 million barrels (about 4.10 million tonnes) in the week to December 10, data from Enterprise Singapore showed.
Fuel oil inflows into onshore storage gained 33.5 per cent at about 940,000 tonnes. Most of these volumes hailed from Indonesia, Brazil and Saudi Arabia.
Meanwhile, outflows totalled 520,000 tonnes, with most volumes headed for China. Apart from high incoming supplies, slow demand from the bunkering sector also contributed to the inventory build, some market sources said.
Inventories continued to hold above this year’s average of 22.6 million barrels per week. This has been weighing on spot markets, keeping cash differentials in discounts.
(Reporting by Jeslyn Lerh; Editing by Subhranshu Sahu)
