Data from Enterprise Singapore shows that as of the week ending August 26, Singapore's refined product inventories rebounded to a three-week high, with all types of crude oil inventories increasing week-on-week.
Total onshore crude oil inventories reached 39.18 million barrels, a 4.0% increase from the previous week; remaining fuel oil inventories rose for the second consecutive week, reaching a three-week high of 19.24 million barrels, a 4.4% increase week-on-week; and middle distillate inventories, including diesel and jet fuel, rebounded to a two-week high.
Due to high inventories, Singapore's total refined product imports plummeted by 31.8%, while total exports decreased by 6.5%, but the country remained a net exporter.
Market sources say that expectations of increased arbitrage supply in recent trading days have begun to put pressure on spot fuel oil premiums. Currently, onshore fuel oil imports have slowed as some cargoes are still en route. Re-exports of crude oil from regions such as India are expected to remain low in the coming weeks, as arbitrage profits are higher in the market west of the Suez Canal.
As Asia's fuel trading hub, Singapore's data is highly relevant. Although the situation in Hormuz remains unresolved, there are signs of marginal easing in the fundamentals of Asian refined oil spot prices, and the East-West arbitrage spread is reshaping the supply of goods.
