Singapore residual fuel stocks fall to four-week low, distillates higher

London, (Quantum Commodity Intelligence) – Fuel oil stocks in the bunkering hub of Singapore fell to their lowest level in almost a month on Wednesday, easing 2% on the week.

According to data from Enterprise Singapore, residual stocks fell by 574,000 barrels to 23.4 million barrels.

The figure is marginally higher than the 23.2 million mt average seen so far this year.

Despite this, the fall in stocks comes as cracks for marine fuel 0.5% have fallen $0.64/b to $1.66/b from $2.30/b a week earlier, while higher sulfur cracks have fallen almost $1/b to -$10.24/b basis FOB Singapore.

In a further sign of weakness, the backwardation in the 3.5%-sulfur market for July/August has narrowed from $1.25/mt a week earlier to just $0.50/mt, while for 0.5% sulfur the market has flattened for the same period from a slight backwardation a week earlier.

Elsewhere, middle distillate stocks edged up to a five-week high, with inventories of diesel and jet fuel climbing 1% to 13.089 million barrels – 5% below the average of 13.7 million barrels so far this year.

Diesel and jet cracks have also been easing over the course of the week.

Light end stocks fell 743,000 barrels to 13.482 million barrels - also 5% under the average so far this year.