Singapore's middle distillates stocks edge up as net exports dip
Singapore's middle distillates stockpiles edged up 0.4% this week, tracking lower net exports of diesel/gasoil and jet fuel/kerosene and continuing imports from key regions such as China, India and Saudi Arabia.
Gasoil and jet fuel/kerosene inventories at the key oil storage hub were at 10.845 MMb in the week ended June 5, compared to 10.804 MMb in the previous week, the data from Enterprise Singapore showed. Net exports of jet fuel/kerosene fell by around 43%, while net exports of diesel/gasoil fell by almost 28%.
Total jet fuel/kerosene imports climbed as China-origin arrivals resumed in line with expectations, with China-based consultancies estimating June-loading exports to near 2 MMb. Total exports fell by around 28%, but some exports to Japan were recorded for the week for the first time in the past two years.
On the diesel/gasoil front, imports were mostly from India, Saudi Arabia and Taiwan. More cargoes from India and the Middle East are still expected in the near-term to the east of Suez markets, some analysts say. The narrowing of the gasoil east-west spread "implies that, for June and July loaders, WCI and AG diesel cargoes are more likely to head east", said Sparta Commodities analyst James Noel-Beswick in a client note. "...The potential increase in supply from AG/India, coupled with existing conditions, underscores the likelihood of continued pressure on Singapore diesel pricing in the near term," he added.
Regional availability are also expected to contribute, given the ready sale volumes from northeast Asian refiners, one regional refinery source said.
So far at least 60,000 t of diesel/gasoil from India are likely bound for Singapore in the first half of June, Kpler shiptracking data showed.
Meanwhile, on the diesel/gasoil front, export volumes declined 14% from last week, but major destinations for Singapore-loading cargoes remain in the region. Key destinations for the week were Myanmar, Malaysia, Australia and Indonesia.
Exports are likely to remain robust especially to Indonesia given the increased buying activity the past few weeks for June arrival parcels, one source said.
The market is seeing slightly a few more shipping enquiries to some Indonesian ports these few days for June, one shipbroking source added.
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