Singapore fuel oil stocks up 3% as distillates drop 12%

Singapore residual fuel oil inventories have turned higher at the start of November. Figures from Enterprise Singapore, reported by ENGINE, put the monthly average so far 3% above the October level. The build is 580,000 barrels, taking the average to 19.14 million barrels and back above 19 million barrels.

Stronger inbound flows help explain the rebuild. Net fuel oil imports are 14% higher so far this month. Arrivals have grown by 578,000 barrels and now average 6.46 million barrels. Shipments out are only 31,000 barrels higher, averaging 2.12 million barrels. That leaves a net intake 547,000 barrels higher, at 4.34 million barrels. ENGINE, citing cargo tracker Vortexa, says Venezuela has provided 20% of this month's fuel oil arrivals, ahead of Russia at 15% and Kuwait at 14%. Malaysia took 59% of the oil leaving the hub, with Australia on 17% and Bangladesh on 10%.

Middle distillate stocks have moved the other way. They are 1.11 million barrels lower so far in November, a 12% drop that leaves them at 8.03 million barrels.

Buyers looking for VLSFO should still plan on roughly two weeks of notice, with lead times now around 13-15 days. The same 13-15 day window now applies to HSFO. Last week some fuel oil quotes stretched beyond three weeks, and HSFO quotes could start near 10 days. LSMGO is a bit quicker, at about 8-10 days, down from 9-11 days the week before. The firmer residual stock figure improves the fuel oil inventory picture versus October. It does not remove the need to book VLSFO or HSFO well before arrival. Anyone who needs LSMGO should note that distillate inventories are drawing down even as notice periods have shortened a little.