Singapore middle distillates stocks slip on rising jet fuel/kerosene exports
Singapore's middle distillates inventories fell by more than 100,000 bbls in the week ended May 29 amid higher net jet fuel/kerosene exports, though diesel/gasoil net exports declined, official data showed on Thursday.
Diesel/gasoil and jet fuel/kerosene stocks held at the key oil storage hub were at 10.804 MMbbls, down from 10.938 MMbbls last week, data from Enterprise Singapore showed.
Net exports of jet fuel/kerosene swelled by more than five times, mainly due to a lack of import arrivals this week. Total exports gained by more than two times from a week earlier, with volumes still headed to key regional destinations such as Australia and Malaysia.
Meanwhile, net exports of diesel/gasoil fell by more than 50% as total imports swelled by more than five times from the previous week. South Korea, Saudi Arabia, Russia, India and Malaysia were key contributors for total imports this week.
Analysts were still expecting more cargo flows from the Middle East and India in the near-term due to the high economic incentives for sellers. "In the immediate term, WCI (west coast India) and AG (Arab-Gulf) diesel cargoes are landing most cost-effectively in Singapore," said Sparta Commodities' James Noel-Beswick in a client note.
For diesel /gasoil exports, volumes slipped by almost 10% week on week. Key destinations for Singapore-loading diesel/gasoil were Australia, Indonesia and Malaysia mostly.
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