Asia/Pacific News
Singapore Oil Terminals Congested After Record Fuel Oil Trades in June
A record of nearly 6 million tonnes - the equivalent of 39 million barrels - of fuel oil traded in June has caused massive congestion at Singapore's oil terminals, Reuters reports.
The massive volume has resulted in the hiring of over 50 tankers to store the excess fuel oil, and traders estimate that with so many cargoes changing hands the congestion isn't expected to abate until later this month.
Loading delays at the port have also reportedly caused two companies to be temporarily banned from Platts' daily market-on-close (MOC) price assessment process, but Platts was said to have declined to comment on the matter.
The heavy June trading was partly caused by U.S. and European refiners increasing production as well as by high demand in the Middle East, resulting in fewer exports and higher prices in Asia.
Shipbrokers told Reuters that traders including Glencore's ST Shipping and Petrochina's Chinaoil have hired 28 tankers on a short-term basis, possibly to store excess oil.
Another broker stated a further 10-18 vessels are loaded with fuel oil but unable to find buyers, and up to a dozen clean tankers have also been retained to load fuel oil.
"Oil bought ... in June is yet to be fully disposed and now the buyers' vessels are looking to run late for loading," a Singapore-based fuel oil trader was quoted as saying.
In June, Singapore experienced over $750 million worth of fuel oil traded during the first week of the month, or about 60 percent of average monthly sales.
