SINGAPORE, Feb 20 (Reuters) - The Singapore trading arm

of U.S.-based refiner Phillips 66 has recently leased a new

floating storage vessel along the Singapore and Malacca Straits

for storing fuel oil, market sources told Reuters.

The 300,000 metric-tons capacity Southern Emperor is the

latest addition to 19 existing fuel oil floating storage vessels

along the Straits chartered by various market participants, said

sources.

So far, Phillips 66 has been partially renting the EM

Splendour for fuel oil storage.

The Singapore and Malacca Straits are a key location for

fuel oil storage in Asia, with traders building inventories of

the fuel around the world's largest bunkering port of Singapore.

Total volume of fuel oil in floating storage on the Straits

is estimated at over 2.6 million tons, based on data from

shipping analytics firm Kpler this month.

The number of tankers used for storing fuel oil on the

Straits is expected to hold largely stable into this year,

market sources said.