Singapore distillates stocks tick up for fifth week
Singapore's middle distillates inventories advanced for the fifth consecutive week to their highest in seven weeks, as persistent weakness in diesel/gasoil exports countered a jump in jet fuel/kerosene exports, official government data showed on Thursday.
Stock levels of diesel/gasoil and jet fuel/kerosene at the key oil storage hub were at 10.37 MMbbl for the week ended Nov. 27, compared to 10.27 MMbbl in the previous week, data from Enterprise Singapore showed.
Net exports of diesel/gasoil dropped almost 60%, while total imports climbed over 145%, led by shipments from South Korea and Kuwait. Total exports of the fuel slipped nearly 24% for the week, with volumes mostly arriving from regional markets including Indonesia, Myanmar and Malaysia.
Diesel outflows from top Asian suppliers have fallen to below-average levels for the second consecutive month, with November volumes projected at an estimated 7 MM tonnes–7.5 MM tonnes, down from the year-to-date monthly average of about 8.09 MM tonnes, LSEG Oil Research said in a report.
China is widely expected to trim fuel production for the remainder of 2024, as domestic demand for transportation fuel has remained weak, the report said.
"The country's outflows of diesel moving forward are expected to stay limited, with refiners utilizing the bulk of remaining quotas for jet-kerosene exports."
Meanwhile, net exports of jet fuel/kerosene surged just over fourfold this week, snapping a two-week decline, as total exports climbed by about 485%. Shipments from Australia, Indonesia and Canada were the key contributors for the increments.
The spike in exports of the aviation fuel offset a 40% week-on-week drop in imports, which were mostly headed for India.
(1 ton = around 7.45 barrels for gasoil)
(1 ton = around 7.88 barrels for jet fuel/kerosene)
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