Gasoil net exports reduce Singapore inventories despite jet fuel from China
(Reuters) - Middle distillates stock levels at key trading hub Singapore slipped to their lowest in over four months as robust net exports of gasoil more than offset a surge in jet fuel imports from China, official data showed on Thursday.
Stockpiles of middle distillates and jet fuel/kerosene held at 7.216 million barrels (0.968 million metric tons) in the week ended July 26, down 8.1% from a week ago, official data from Enterprise Singapore showed.
Gasoil net exports, most notably to Malaysia, swelled by almost 50% week on week. Exports to Malaysia hit more than a one-month high above 100,000 tons. Unplanned production disruption at refineries in Malaysia led to buying to cover demand, one trading analyst said.
Exports to regional destinations such as Indonesia also remained steady, contributing to higher total exports week on week.
Below are Singapore's leading sources of gasoil imports in the week and their respective volumes (in tons):
Imports from South Korea were steady week on week, in line with earlier market expectations, given the ready supply from key refiners after the maintenance season ended in end-June to early July.
Oman-origin arrivals continued for a second consecutive week, but two Singapore-based trading analysts are expecting fewer Middle East-origin parcels to land in Singapore starting August as sellers can command stronger margins supplying the West.
Separately, net exports of jet fuel/kersosene dropped significantly, with total imports rising and exports decreasing by more than 65% week on week.
Imports from China for jet fuel/kerosene emerged for the first time in four months, with expectations of more cargoes to come in the next few weeks as the country ramps up exports due to better seller margins and higher refinery runs there.
Looking ahead, Singapore's stock levels of middle distillates could be drawdown further if the market remains in backwardation, with prompt sale prices higher than forward months, one northeast Asia refinery source said.
Comments