Singapore's middle distillates stocks hit over 6-month high on jet fuel imports
(Reuters) - Middle distillates inventories at key storage hub Singapore hit a more than six-month high as the city-state turned net importer of jet fuel/kerosene despite an increase in gasoil outflows to the West, official data showed.
Stock levels of gasoil and jet fuel/kerosene rose 4.1% to 9.374 million barrels for the week to Sept. 27, compared with 9.001 million barrels a week ago, the data from Enterprise Singapore showed on Thursday.
China jet fuel barrels resurfaced for the first time in almost two months, in line with earlier market expectations, as state-owned oil majors cash in on profits for exports.
The trend is expected to continue into October, with at least 84,000 metric tons of the aviation fuel already expected to load from China to Singapore, shiptracking data Kpler showed.
Shipping enquiries are present for at least 35,000 tons of jet fuel loading from north China to Singapore in the market as well, one shipbroking source said.
Total jet fuel exports however paled in comparison, with around 28,000 tons heading to Australia for the week.
Gasoil wise, net exports were three fold from last week, as total exports surged by more than 70% week on week, data showed.
Major outflows were to Austalia and New Zealand, likewise the past few months, but some exports to the West and Africa emerged as well supporting total exports.
The emergence of exports to the West was attributed to a slightly wider east-west arbitrage in first-half September of up to a discount of $86 a ton, which could have encouraged some sellers to pull their cargoes there, one Singapore-based trade source said.
Exports to South Africa could continue into October, following some slight changes in tradeflow should the Russian ban on low-sulfur diesel continue, a second source said.
Total imports however climbed as well, with imports from China being the key contributor.
Likewise jet fuel/kerosene, more gasoil cargoes from China are likely to start landing in Singapore the next few weeks given the availability of export quotas.
At least three more 60,000 ton of gasoil cargoes will arrive in Singapore the next two weeks from China, LSEG shiptracking data showed.
Thailand exports to Singapore also emerged for the first time in a month, the data showed.