Friday, 5 August 2016

Four-month hangover from Singapore fuel oil party finally ends | Reuters

Four-month hangover from Singapore fuel oil party finally ends | Reuters:

"Singapore's long hangover from a near-record fuel oil trading binge in March is ending as tonnage traded that month and held offshore moves into landed tanks, signalling a tighter market in the world's biggest trading hub for the shipping fuel.

The excess floating storage taken up in March is now virtually empty. With fuel oil supplies coming into Asia expected to remain low because of inventory declines in Europe STK-FO-ARA and strong seasonal demand from the Middle East, onshore stocks are also expected to fall, while prompt values for the bottom-of-the-barrel product improve.

"We are poised for some tightening of supplies in the East and that's why we're seeing some recent strength across the near-term time spreads," says Nevyn Nah, oil products analyst at Energy Aspects."



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