Singapore Fuel Oil Stocks Remain Under Pressure Amid Worsening Supply Tightness

According to the latest data from Enterprise Singapore, the country's residual fuel oil inventory has risen by 3% so far this month compared to July, increasing by 610,000 barrels to 19.58 million barrels and returning to the 19-million-barrel level. This was driven by a 2% month-on-month increase in net fuel oil imports in August, with imports rising by 789,000 barrels to 6.06 million barrels and exports increasing by 715,000 barrels to 2.41 million barrels.

In terms of trade flows, Russia was Singapore's largest source of residual fuel oil imports this month, accounting for 21% of total imports, followed by the UAE and Brazil, each with a 19% share. On the export side, Malaysia ranked first with a 32% share, while China and Mauritius accounted for 28% and 7%, respectively. Meanwhile, Singapore's middle distillate inventories fell by 15% this month to 7.34 million barrels.

On the supply side, very low sulfur fuel oil (VLSFO) remains relatively tight, with suppliers adjusting recommended lead times from the previous 16–20 days to 12–24 days. Although current inventories have recovered from the below-18-million-barrel low in June, they remain under 20 million barrels and have not yet returned to pre-conflict levels.

In addition, fluctuations in U.S.-Iran tensions are affecting normal passage through the Strait of Hormuz, persistently disrupting cargo arrivals and constraining supply recovery. High sulfur fuel oil (HSFO) supply is also tight, with lead times extended from 12–15 days previously to 10–24 days.

For low sulfur marine gasoil (LSMGO), lead times are currently 2–11 days, adjusted from last week's 5–8 days. Overall, while inventory pressure in Singapore's fuel oil market has eased slightly, a full supply recovery will take time, and market participants should continue to monitor the potential impact of geopolitical factors on logistics chains.