Last year was the warmest year since global records began in 1850. Extreme weather and prolonged heatwaves in many parts of the world meant temperatures were 1.18C above the 20th-century average. This year, heatwaves have already hit the Middle East and south-east Asia, starting in April. Power companies have a busy year ahead.
One immediate sign of extreme weather to come is falling levels of onshore fuel oil stockpiles. In Singapore, a key storage hub for fuel oil, those fell to a more than five-year low as of May. Supplies to Asia have already been hit as demand in the Middle East, experiencing higher temperatures, has been rising earlier than expected. South Asia has also been importing large amounts of fuel oil for power generation as temperatures rise.
Sharp declines in flows from the Middle East to Singapore explain falling fuel oil inventories. That also means tighter supplies for south-east Asia where record-high temperatures have led to school closures early last month.