Singapore fuel oil inventories at 9-year low on persistent supply shortages

SINGAPORE, Aug 8 (Reuters) - Singapore's weekly onshore fuel oil inventories fell for a

third straight week to a more than nine-year low of 14.348 million barrels, about 2.141 million

tonnes, in the week ended Aug. 7, data from International Enterprise (IE) Singapore showed on

Wednesday.

- Residual fuel stocks are now at their lowest since July 2009 after falling 3 percent, or

451,000 barrels, or 67,000 tonnes, in the week to Aug. 7, the data showed. (STKRS-SIN)

- This came despite higher weekly fuel oil net imports into Singapore in the week to Aug. 7

which rose 91 percent from the week before to 467,000 tonnes, the data showed.

- On average, however, Singapore fuel oil net imports stood at 751,000 tonnes per week in

2018.

- Demand for marine fuel oil in Singapore may have contributed to the latest decline in

weekly stocks, two trade sources said.

- Singapore fuel oil inventories have been hammered by months of below-average arbitrage

flows into Singapore as cargoes were diverted to the Middle East to meet strong seasonal demand

there for power generation.

- But as Middle East demand starts winding down around the start of next month, and fresh

supplies began to emerge this week from regional suppliers there, the downward pressure on

Singapore supplies may soon end.

- This week's onshore fuel oil inventories were 39 percent lower than a year ago.

- Singapore's net exports of fuel oil to China topped the week ended Aug. 7 at 61,000

tonnes, followed by Bangladesh at 46,000 tonnes and New Caledonia at 40,000 tonnes.

- The largest net imports into Singapore originated from Italy at 154,000 tonnes, followed

by the UAE at 129,000 tonnes, Iraq at 102,000 tonnes and Russia at 83,000 tonnes.

- Fuel oil imports into Singapore from the UAE were at a nine-week high in the week to Aug.

7.

- Fuel oil inventories in Singapore have averaged 19.887 million barrels, or 2.968 million

tonnes, a week since the start of 2018, compared with 23.552 million barrels, or 3.515 million

tonnes, in 2017.

Week to Aug 7 Total Imports Total Exports Net Imports

Fuel oil (in tonnes) BANGLADESH 0 45,725 -45,725

CHINA 0 61,040 -61,040

INDIA 54,160 492 53,668

INDONESIA 59,229 0 59,229

IRAQ 101,824 0 101,824

ITALY 154,182 0 154,182

JAPAN 34,786 38,233 -3,447

MALAYSIA 190,773 112,696 78,076

NEW CALEDONIA 0 40,050 -40,050

PHILIPPINES 0 33,963 -33,963

RUSSIA 83,112 0 83,112

THAILAND 30,951 20,495 10,455

UNITED ARAB EMIRATES 128,765 0 128,765

VIETNAM 0 17,970 -17,970

TOTAL 837,782 370,664 467,118

(Reporting by Roslan Khasawneh; Editing by Christian Schmollinger)