As net imports increased for a third week in a row, residual fuel oil inventories in major trade hub Singapore increased from the previous week.
According to Enterprise Singapore data, onshore fuel oil stocks increased by 2% to 21.33 million barrels (3.36 million tonnes) in the week ending January 4. The minor improvement coincided with an increase in weekly net imports, which rose by 3% to 658,000 tonnes.
This week, Malaysia imported 236,000 tonnes of net fuel oil into Singapore, followed by the United Arab Emirates with 77,000 tonnes and Brazil with 74,000 tonnes. Bangladesh, the Philippines, and Nepal were Singapore’s top three countries for net exports of fuel oil, each receiving 17,000 tonnes.
For the third week in a row, Singapore’s weekly fuel oil net imports rose as consistent supplies continued to reach Asia.
According to the most recent analyses by Refinitiv Oil Research released this week, fuel oil inflows to Asia reached a three-month high of 5.04 million tonnes in December. Recent trading sessions have seen a limited recovery in the spot market due to steady supply arrivals.
Before you invest, it’s crucial to understand the several subcategories that the oil industry sector of the stock market is divided into. Some drilling and exploration companies depend on the price of oil for their revenue; the more money they make, the more drilling and exploration they do. They despise life when the price of oil is low.
Other businesses concentrate on refining; they acquire the oil, transform it into gas or something else, and then sell it. They favor a high price for gasoline but a low price for oil. They make money in this manner.
The price of oil has increased to levels not seen in roughly a year and a half. This is partly predicated on news that OPEC has decided that production levels must be frozen. When I look into it a little more, I find that they have agreed on the necessity but will meet again in December to try to reach an understanding on what the production levels will be, per country. They are still far from reaching an understanding on that, and Iran hasn’t agreed to any kind of freeze.
A further 500 million barrels a day look to be coming online in Nigeria, while frackers in the US have reduced production costs to the point where they are profitable at $45 per barrel and rig counts are starting to rise once more, meaning that output is rising here in the US.