Spot fuel oil premiums were little changed on Thursday, while onshore inventories at Singapore edged up to a four-week high.
Inventories have been holding above average levels, with most recent data showing volumes above 21 million barrels.
Most of the week’s imports came from Brazil, Saudi Arabia and Russia, while majority of exports were headed to China, latest data showed.
The market remained cautious about the supply outlook as with previous sessions.
Singapore cash premiums for high sulphur fuel oil (HSFO) rose slightly on Thursday amid a wider backwardation, while very low sulphur fuel oil (VLSFO) inched down as offers eased for loading dates into the second half of February.
Meanwhile, cracks climbed on Thursday due to lower crude prices. Singapore 380-cst HSFO crack (FO380BRTCKMc1) closed higher at a discount near $2.55 a barrel, while VLSFO crack (LFO05SGBRTCMc1) closed at a premium near $11 a barrel.
Separately, Thailand’s PTT offered VLSFO for loading in February via a tender that closes on Friday, based on industry sources.
INVENTORY DATA
– Singapore onshore fuel oil stockpiles (STKRS-SIN) were at 21.11 million barrels (3.32 million tons) in the week to Jan. 22, up 1.7% week-on-week, Enterprise Singapore data showed.
