Singapore's middle distillates stocks snap three-week uptrend
Singapore's middle distillates inventories fell 5% from last week, snapping three weeks of gains as a jump in net jet fuel/kerosene exports outweighed declines in diesel/gasoil net exports, official data showed on Thursday.
Commercial stockpiles of diesel/gasoil and jet fuel/kerosene at Singapore, a major global oil storage hub, were at 11.384 MMbbl for the week ended Aug. 21, compared with 12.016 MMbbl a week earlier.
A sevenfold gain in net exports of jet fuel/kerosene was the key driver for the decline, with total exports of the fuel up by almost the same amount.
Exports of the aviation and heating fuel were mostly to regional destinations such as Australia, Indonesia and Vietnam, given the earlier spot buying interest from these importers earlier last month.
Meanwhile net exports of diesel/gasoil fell around 72%, with total imports growing by five times from a week earlier.
Cargo flows from India, Taiwan and Korea were particularly prevalent for the week, with analysts already expecting that imports will remain steady in the near-term since there are limited demand outlets elsewhere in the region.
Lower refinery production was a second key reason for the rising imports, with at least two refiners on scheduled maintenance till at least the second-half of September, they added.
Up to 120,000 metric t more volumes from South Korea and Taiwan are slated to reach Singapore by the end of August, LSEG shiptracking data showed.
China-origin arrivals are also expected for August into Singapore, the data showed.
However, India-origin exports to Singapore will be minimal until first-half September ahead of refinery maintenance season there and possibly better arbitrage opportunities west in the near term, one trade source said.
On the export front for diesel/gasoil, volumes gained by 9% from the previous week, as exports to regional destinations such as Indonesia and Myanmar remained upbeat.
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