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Singapore’s oil product stocks hit over nine-month lows as US-Iran war cuts supply

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Published07 MAY 26 - 15:08 Reading time  minutes

“Residue inventories are coming off, likely from the effect of lower fuel oil yields from the refineries that have needed to switch to a lighter crude diet. This trend is likely to continue as medium sour crude from the Middle East remains fairly limited in supply.”

  • Expert: June Goh (Senior Oil Analyst, Sparta)
  • Publication: Reuters
  • Market Focus: Fuel Oil, Crude Trade Flows, Refining Economics, Singapore Market
  • Geographies: Singapore, Middle East, Asia

In a recent analysis for Reuters, Sparta’s Senior Oil Analyst, June Goh, explains that residual fuel inventories in Singapore are falling not just due to supply disruption but because refineries forced onto a lighter crude diet are producing lower fuel oil yields. Residue stocks totalled 19.88 million barrels — hovering near a 50-week low — with Middle East crude imports still near zero. Goh flags that this is a structural trend, not a temporary blip, as medium sour crude from the Middle East remains limited in supply. Traders should monitor whether Western supply substitution can offset the yield shortfall or whether Singapore stocks continue to tighten.

[Read June Goh’s full market commentary in Reuters]

Author

June Goh

Senior Oil Analyst

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