Singapore turns net importer of gasoil this week; distillates stocks at 5 month high
(Reuters) - Singapore's middle distillates stocks climbed to near five-month highs on Thursday after official data showed the country flipped to becoming a net importer of gasoil for the week and as jet fuel/kerosene net exports fell.
Inventories of gasoil and jet fuel/kerosene held at key storage hub Singapore were at 8.735 million barrels (1.172 million metric tons) in the week ended Sept. 6, having risen by slightly more than 9% week on week, the data showed.
The pace of declines in total gasoil exports was slower than the drop in total imports, making Singapore a net importer for the first time in almost three months.
Surprise gasoil arrivals from the United Arab Emirates was the key contributor, bumping up total imports.
These volumes were likely loaded in mid-August, from ADNOC's Ruwais refinery, shiptracking data from Kpler showed.
The market initially expected most of Middle East- or India-origin parcels to head to markets in the west of Suez as prices there were more attractive for sellers, but it seems some cargoes are still flowing here, one northeast Asian market source said.
Middle East and India loading exports for August are at the highest since January 2022, Kpler data showed.
Imports from China were in line with earlier expectations, given the lucrative export margins for state-owned refiners.
More cargoes are likely to emerge over the rest of September as China's major exporters continue to cash in on profits in free-on-board Singapore prices, following Beijing's release of more export quotas just last week, some Asian trading sources said.
India volumes arrived as well, albeit lower than the past two weeks.
On the gasoil export front, total volumes fell by more than 50% week on week, with volumes to Australia and Malaysia all declining week on week.
Meanwhile, jet fuel net exports also dropped by more than 50%, with exports to the Pacific region almost minimal.
Some volumes were exported to the Philippines for the first time in a month, which limited declines.