Fuel oil supplies from the West into Asia are expected to rebound by around 14 per cent in September, which together with sustained better demand and lower stockpiles, could keep Asian cash premiums supported, sources said on Monday.
An estimated 3.57 million tonnes of fuel oil is tentatively scheduled to arrive in Asia next month from Europe and the Americas, 9.8 per cent more than the revised volume in August, Reuters analysis of shipping data showed.
An estimated 3.57 million tonnes of fuel oil is tentatively scheduled to arrive in Asia next month from Europe and the Americas, 9.8 per cent more than the revised volume in August, Reuters analysis of shipping data showed.
About 2.63 million tonnes, or 74 per cent of Asia's volumes, will land in Singapore, a major break-bulk centre and the world's top bunkering hub.
While total volumes into Asia are higher, Singapore will receive around 220,000 tonnes less than August.
Despite higher month-on-month flows from the West, which meets more than 40 per cent of Asia's demand, supplies are still at least 20 per cent below last year's monthly average.
Thin supplies, combined with lower stockpiles in Singapore and a pick-up in marine sales in Singapore, should keep cash differentials firm.
While total volumes into Asia are higher, Singapore will receive around 220,000 tonnes less than August.
Despite higher month-on-month flows from the West, which meets more than 40 per cent of Asia's demand, supplies are still at least 20 per cent below last year's monthly average.
Thin supplies, combined with lower stockpiles in Singapore and a pick-up in marine sales in Singapore, should keep cash differentials firm.
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