It said they were hoping to capitalise on potentially firm trading margins in the Asian market.
The report mentioned Swiss trader Mercuria Energy Trading and Southern Petrochemical Co Ltd, an affiliate of China’s Sinopec Group.
Observers say supplies to the Asian fuel oil market tightened between May and July, due to robust bunker sales, strong seasonal demand from the Middle East, and lower Western arbitrage flows.
Fundamentals softened with more arbitrage cargoes arriving in August and September, helping Singapore onshore fuel oil stocks hit an all-time high in the week ended September 2. Pressure on the market could resume in October when arbitrage arrivals are expected to fall sharply.
Global refinery run cuts are also likely to squeeze fuel oil output.
Reports say land-based storage in southern Malaysia and Singapore is largely full or under contract and that low tanker rates have made VLCCs an attractive storage option.
The vessels are anchored close to the Singapore fuel oil and bunker hub, where bunker demand has remained strong despite the global recession.
Floating storage capacity in Malaysian waters is on the up
09.07.2009 - NEWS
Reports say at least eight tankers are now anchored in south Malaysian waters acting as floating storage, mostly for fuel oil.
According to Reuters, the number of very large crude carriers (VLCCs) being used to store and blend fuel has been growing as more trading firms move into the residual fuels market.
