Singapore middle distillate stocks tumble to nearly three-month low
SINGAPORE (Reuters)—Singapore's middle distillates stocks slid to a nearly three-month low this week, falling below 11 MMbbl for the first time in a month as gains in jet fuel/kerosene net exports offset declines in diesel/gasoil net exports, government data showed on Thursday.
Diesel/gasoil and jet fuel/kerosene stocks at key oil storage hub Singapore were at 10.115 MMbbl, falling by almost 1 MMbbl from 11.109 MMbbl last week, official figures from Enterprise Singapore showed.
Net exports of jet fuel/gasoil gained by slightly more than 40% week on week as total exports to regional destinations remained robust. Cargo outflows were mostly to Australia, New Zealand, Malaysia and Vietnam. Imports were minimal, with China-origin volumes missing for a second consecutive week.
Meanwhile, on the diesel/gasoil front, net exports slipped for the first time in three weeks to be down almost 10% week on week. Total imports of the transport and industrial fuel were almost 53% higher from a week earlier.
Volumes from South Korea were robust, in line with earlier expectations, given the lack of demand outlets outside of the region, traders said.
India-origin cargoes resurfaced after a one-week hiatus, with more arrivals likely to emerge in the near term given the better seller economic incentive east instead of west, one Singapore-based trade source said.
Nearly 200,000 metric tons of India-origin cargoes are likely to be bound for Singapore in May, LSEG and Kpler ship-tracking data showed.
Imports from Saudi Arabia and the United Arab Emirates also came into the picture after missing out in the past two months, with some analysts saying this trade flow could continue.
While sellers of cargoes loading from the west coast of India have better economic incentive in the east of Suez markets, reduced exports from the country because of domestic demand will still result in the narrowing of a gasoil east-west arbitrage and lead to Middle East-origin cargoes to flow in the same direction, said Sparta Commodities' James Noel-Beswick in a client note.
On the diesel/gasoil export front, volumes heading to regional destinations were still firm —especially to Australia, Indonesia, Malaysia, Vietnam and Myanmar.
There were expectations of cargo flows to Indonesia to remain robust given the prompt demand strength in the near-term, with Pertamina seeking at least five spot cargoes for May delivery in the early part of this week.
(1 ton = around 7.45 barrels for gasoil)
(1 ton = around 7.88 barrels for jet fuel/kerosene)
(Reporting by Trixie Yap; Editing by David Goodman and Janane Venkatraman)
Comments