Singapore's residual fuel oil stocks have averaged 3% higher so far in August compared with July, according to the latest data from Enterprise Singapore. Singapore is the world's largest marine bunkering hub by volume, making its inventory levels a closely watched barometer of Asian bunker fuel availability.

Residual fuel oil stocks rose by 610,000 barrels to 19.58 million barrels on a monthly average basis, while middle distillate stocks declined by 1.33 million barrels to 7.34 million barrels.

The increase in inventories above the 19 million-barrel mark has been supported by a 2% rise in net fuel oil imports during August. Fuel oil imports grew by 789,000 barrels while exports climbed by 715,000 barrels, leaving net imports up by 74,000 barrels.

Trade Flows

Russia accounted for 21% of Singapore's fuel oil imports this month, making it the largest source, followed by the UAE and Brazil at 19% each, according to cargo tracker Vortexa. The continued prominence of Russian barrels in Singapore's import mix reflects shifting trade patterns that have reshaped Asian fuel oil flows since Western sanctions on Russian energy products.

On the export side, Malaysia was the top destination with a 32% share, followed by China at 28% and Mauritius at 7%.

Fuel oil imports totaled 6.06 million barrels so far in August, while exports reached 2.41 million barrels. Net imports stood at 3.65 million barrels.

Meanwhile, Singapore's middle distillate inventories dropped 15% month-to-date to 7.34 million barrels.

Supply Conditions

VLSFO availability in Singapore remains tight, with suppliers now recommending lead times of 12–24 days, compared with 16–20 days the previous week. Very Low Sulphur Fuel Oil is the dominant compliant marine fuel grade used by ships under the International Maritime Organization's global sulphur cap, which took effect in January 2020. Supply continues to face pressure as the port's fuel oil inventories have yet to recover to pre-conflict levels. Cargo inflows remain disrupted by the fragile US-Iran peace situation, which continues to affect traffic through the Strait of Hormuz, a critical chokepoint for Gulf-origin crude and fuel oil shipments to Asia.

Enterprise Singapore data shows that the port's fuel oil inventories fell from more than 23 million barrels in March to below 18 million barrels in June. While stocks recovered slightly to approximately 19 million barrels in July, they remain below 20 million barrels.

HSFO availability also remains tight, with recommended lead times widening to 10–24 days from 12–15 days a week earlier. High Sulphur Fuel Oil is primarily consumed by ships equipped with exhaust gas cleaning systems, or scrubbers. LSMGO lead times range from 2–11 days, compared with 5–8 days the previous week.

Source: By Tuhin Roy, ENGINE,