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2026-04-09 18:26:25
[Singapore's Fuel Oil Inventories Plunge to 10-Week Low as Strait of Hormuz Restrictions Cut Off Middle Eastern Supply] ⑴ Data released by Enterprise Singapore on Thursday showed that Singapore's onshore residual fuel oil inventories fell 7.4% to 21.72 million barrels in the week ending April 8, the lowest level in ten weeks. ⑵ The sharp drop in inventories was mainly due to a significant contraction in fuel oil imports from the Middle East. Total imports fell sharply by 31.9% week-on-week to approximately 625,000 tons, as most Middle Eastern tankers remained unable to arrive due to restrictions in the Strait of Hormuz. ⑶ Brazil replaced the Middle East as Singapore's largest source of fuel oil supply that week, with imports of approximately 88,600 tons. Stable arrivals from Brazil in recent weeks have alleviated market anxieties about supply shortages to some extent. ⑷ In terms of specific trade flows, Malaysia ranked first in imports with approximately 154,600 tons, followed by Iraq and Brazil. South Korea and China were the main destinations for exports, receiving approximately 99,900 tons and 80,900 tons respectively. (5) Despite inventories falling below historical averages, Singapore fuel oil spot price spreads have softened in recent trading days, indicating that the market remains cautious about the strait's reopening soon. (6) Analysts point out that if strait restrictions continue, the Asian fuel oil market will face the dual challenges of a supply gap in the Middle East and the substitution of shipping capacity from Brazil. Low-sulfur fuel oil crack spreads may continue to fluctuate widely amid supply anxieties and weak demand.
