Singapore middle distillates stocks drop after 3 weeks amid strong jet fuel exports
(Reuters) - Singapore's middle distillates stocks fell for the first time in three weeks, tracking robust net exports of jet fuel/kerosene though a dip in net exports of gasoil limited overall draws, official data showed on Thursday.
Inventories of gasoil and jet fuel/kerosene held in key oil storage hub Singapore declined to 9.555 million barrels in the week ended Oct. 11 from 9.885 million barrels a week ago, the data from Enterprise Singapore showed.
Total exports of jet fuel/kerosene exceeded total imports significantly though net imports were still lower from a week earlier.
Exports of the aviation fuel were mostly to regional destinations such as Australia and New Zealand.
On the gasoil front, Singapore switched to being a net importer of the fuel, with total imports superseding total exports.
Weekly gains in total imports of gasoil, almost eight-fold, limited overall inventory draws.
China-origin import cargoes continued flowing to Singapore in line with earlier expectations.
Export margins are still proving lucrative for major Chinese refiners to ship cargoes out from home, despite a drop in Asian cracks in the past week, one Chinese-based trader said.
The spread between local wholesale diesel prices in China and Asia's physical barges remains above $10 a barrel, a second Chinese trader said.
Imports from South Korea and Taiwan also swelled week-on-week, following a slowdown in the past few weeks, given the steady spot sales volumes for September loading from major refiners there.
One Russian cargo, which loaded end-August according to Kpler ship-tracking data, was also imported.
Total exports for the transport and industrial fuel rose as well by close to three times week-on-week. Cargo flows continued into regional destinations such as Australia, Indonesia, Malaysia and New Zealand.
Exports to South Africa were evident as well, given the earlier Russian ban on diesel was forcing some sellers to reroute their cargoes from Asia to Africa instead.
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