Singapore's middle distillates stocks rise to 3-yr high
Singapore's middle distillates stocks climbed for a second week to hit a three-year high of nearly 12 MMbbls, as a drop in diesel/gasoil net exports countered gains in jet fuel/kerosene net exports. Inventories of diesel/gasoil and jet fuel/kerosene at key oil storage hub Singapore were at 11.993 MMbbs for the week ended Aug. 5, up from 11.353 MMbbls a week earlier, data from Enterprise Singapore showed.
On the diesel/gasoil front, net exports fell by around 44% week-on-week. Total exports of the transport and industrial fuel fell by about 57%, with shipments to key regional destinations such as Australia, Indonesia and Malaysia down. Some cargoes were heading to Africa for the week, specifically Mozambique, capping overall weakness.
Meanwhile, on the import front, India-origin volumes stayed robust in line with earlier expectations, given the economical east-west arbitrage window for traders. The market was mixed for this week on whether this trend could continue in the short run, given lower east-west freight costs in recent weeks, as demand in the West remains weak.
Some swing sellers in the Middle East and India could still send cargoes here in the near-term if they cannot find demand outlets in the West, one Singapore-based trade source said. Around 52,000 bpd of diesel/gasoil from the Middle East and India are still expected to dock in Singapore shores in August.
Separately, shipments from other regional exporters were absent this week, though some traders say several cargoes from northeast Asia are waiting for discharge at Singapore tanks in the coming two weeks. Up to 68,000 bpd of northeast Asia-origin cargoes will likely reach Singapore in August.
On the jet fuel/kerosene front, net exports climbed by almost two-fold as total exports declined at a slower pace than total imports.
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