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Singapore's Dec jet fuel imports struck multi-year high up on India, S. Korea supply

Singapore's jet fuel imports most likely struck multiyear highs in December, with India the leading supplier as the arbitrage to Europe stayed shut, according to trade sources and shiptracking information.

Singapore's jet fuel imports are closely followed by markets as the city state is a major trading and storage center for refined fuel in Asia.

The strong supply to Singapore and expectations of higher exports from China after its refiners got their first batch of the 2025 export quota recently, could weigh on Asia's spot jet fuel costs, stated the sources, who all wanted not to be recognized.

Singapore's jet fuel imports increased to 2.55 million barrels in December, from around 2 million barrels the previous month, price quotes from LSEG, Kpler and trade sources revealed, with many of the supply originating from India and South Korea.

These volumes were the greatest in almost 5 years, Kpler information showed.

India diverted its jet fuel and kerosene exports from Europe to the rest of Asia as the east-west arbitrage stayed closed, FGE expert Liu Xuanting stated in a note.

The increase in supply has actually turned the regrade to unfavorable territory because mid-December, she added.

The regrade, a spread in between prices of jet fuel and 10-ppm sulphur gasoil, averaged at discount rates of 80 cents a barrel over the previous 2 weeks versus November's average premium of 80 cents.

Indian refiners typically sell refined items via spot tenders to traders who either send these volumes to Asia or northwest Europe, depending on arbitrage chances.

India's exports to Asia struck multi-year highs in November as it did not export any to northwest Europe.

Its December exports to northwest Europe were at around 1 million barrels, bit altered from October's two-year lows, LSEG and Kpler shiptracking data revealed.

Some northeast Asia refiners also switched to selling jet fuel instead of diesel in the previous two months, lured by much better margins, one northeast Asia-based source stated.

The East-West price spreads still indicate the East as a. chose destination for January-loading freights, two analysts. stated.

Some India-origin barrels will continue to get here on Asian. shores this month, as buying activity from northwest Europe will. require a long time to get and Asian prices need to compromise. even more for the arbitrage window to reopen, among the. Singapore-based trade sources said.

About 600,000 barrels of India's jet fuel will be heading to. southeast Asia and Australia in January, one shipbroking source. said.

Nevertheless, some traders expect jet fuel streams from the Middle. East and India to northwest Europe to emerge quickly, as. inventories at the Amsterdam-Rotterdam-Antwerp (ARA) refining. and storage hub << STK-JET-ARA > have actually dropped near eight-month. lows.

China-origin barrels will keep Asian markets fully supplied. in these 2 months and swing providers might wind up finding. need outlets west once again, a third trade source stated.

(source: Reuters)