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Singapore's oil products inventories fall to a two-week low

Official data on Thursday showed that oil product inventories in Singapore, a key trading hub in Asia, have eased after a recovery last week. This was primarily due to a drop in stocks across the barrel.

Enterprise Singapore's data shows that the combined onshore oil products stocks were 40.45 millions barrels during the week ending July 1, a decrease of 4.1% compared to last week.

The weekly average for June was 37.5 million barrels.

Following an interim agreement between the U.S.A. and Iran, the markets are preparing for a gradual improvement in supply as more ships begin to leave the Strait of Hormuz.

LIGHT DISTILLATES AND RESIDUAL FUELS - LOG TWO WEEK LOWS

Singapore's light distillate inventory, which includes naphtha, gasoline and other products, has fallen to a new low in two weeks, falling to 12.7 million barrels. This is because net gasoline exports have outpaced imports. There are also strong flows of gasoline to important buyers like Indonesia.

The total gasoline exports were about 337,000 metric tonnes (about 2.8 millions barrels). This was more than the imports, which were roughly 249,000 tons. Indonesia alone imported nearly 267,000 tons. Saudi Arabia supplied about 82,000 tonnes.

The naphtha inventories likely increased as imports of approximately 206,000 tons (1.8 millions barrels) exceeded the exports of around 175,000 tons. Cargoes arriving mostly from Russia, at 91,000 tonnes, were the main contributors. Middle East imports were missing.

The residual fuel oils inventories have also dropped, after a strong recovery last week. Stocks totaled 19.65 million barrels (3.0 million tons), a 3.2% drop week-on-week.

Total exports dropped 53.7% to 165,000 tonnes, while imports declined 15.5%.

After weeks of absence some inflows, including from Iraqi and Saudi Arabia, were finally recorded.

The tanks' outflows were mostly destined for the Philippines and Vietnam.

MIDDLE DISTRILLATES STOCK IS AT A THREE WEEK LOW

The middle distillates stock, which includes diesel and jet fuel, fell?for nearly a week, but was still above 8 million barrels.

Net exports for both fuels, however, were lower week-on-week. Net exports of diesel and gasoil fell by about 10% while jet fuel and Kerosene's net exports dropped 60%.

Exports to Australia, Indonesia, and New Zealand were mostly diesel and gasoil.

The wider east-west spread of the last week has led traders to expect fewer cargoes coming from India in the near future, signaling better margins for sellers on the west of Suez markets.

For the week, most of the imports of jet fuel and Kerosene were from China and South Korea.

(source: Reuters)