Onshore fuel oil stockpiles in major oil storage hub Singapore rebounded to about 25 million barrels as cargo inflows surged, after edging lower last week, data showed on Thursday.

Inventories for residual fuels climbed 7.6% to 24.78 million barrels (about 3.90 million metric tons) in the week to October 29, hitting a two-week high, based on Enterprise Singapore.

Fuel oil imports rose more than 50% to nearly 1.2 million tons, led by volumes from various origins.

Brazil was the top origin of supply for a second consecutive week, followed by strong inflows from the United Arab Emirates and intra-regional flows from storage hub Malaysia.

Meanwhile, fuel oil exports climbed 22% to about 435,000 tons, with outflows mostly heading to South Korea and China.
Total inventories continued to prevail well above an average of about 22 million barrels per week.

Current market structure remained conducive for storage incentive, with both high-sulphur and low-sulphur markets in contango for prompt trading months. This means prices for future delivery are higher than that for current delivery.

Spot differentials held in discounts as prompt supply remained well available.
Source: Reuters