OPEC Sees Steady Asia Bunker Demand

by Ship & Bunker News Team
Monday July 18, 2016

Steady bunker demand helped the Asian fuel oil market to remain "relatively stable" during June, the Organization of Petroleum Exporting Counties (OPEC) said in its latest Monthly Oil Market Report (MOMR) for July

The organisation also noted higher requirements in South Korea, China, and Japan, while the fuel oil crack spread in Singapore against Oman for the month remained unchanged at an average of about minus $10/b.

Residual fuel oil stocks in Singapore were 31.1 mb at the end of May, 26.5 percent higher than the same time a year ago, according to the OPEC data.

In the European markets, residual fuel oil stocks stood at 82.1 mb in May, 2.9 percent lower than the latest five-year average, with the decline attributed to a decrease in fuel oil output.

In the key Amsterdam-Rotterdam-Antwerp (ARA) market, fuel oil stocks rose by 1.1 mb to stand at 7.6 mb at the end of May, 11.6 percent higher than a year ago, with the build said to have been driven mainly by higher exports from Asia along with a generally lower demand for bunkers in the region.

That said, OPEC noted that: "The fuel oil market exhibited a strong recovery on the back of a tightening market with lower inflows from the Baltic amid slowing inventories in ARA.

"Support also came from the demand side with the recent re-opening of arbitrage opportunities to Singapore on the back of a fall in freight rates and some recovery seen in the demand for domestic bunkering."

Ship & Bunker News Team
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