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Singapore middle extracts stocks skyrocket to 3-month high as net exports dip

Singapore's middle distillates stocks soared to a threemonth high, reversing the past two months of general drop, following a dip in web diesel/gasoil exports, official information revealed on Thursday.

Inventories of gasoil/diesel and jet fuel/kerosene at key oil storage center Singapore were at 9.547 million barrels as of Feb. 14, up by more than 2 million barrels from the week before, the data from Business Singapore revealed.

Net exports of diesel/gasoil slipped by nearly 54% week on week as overall imports increased by more than five times from last week.

Arrivals from India, Qatar and Taiwan were the main factors.

These freights from India and the Middle East were earlier expected given the volatile arbitrage window in between East and west West, one trade source stated.

This trend may not sustain given that the arbitrage window to the West has widened, experts say.

Calculations considering Cape routing especially suggest that WCI (and AG) arb paths now target Northwest Europe instead of Singapore, Sparta Commodities' analyst James Noel-Beswick, said.

Regional freights from South Korea and China nevertheless will likely still be routed to Singapore. Continued high imports into Singapore are prepared for, particularly as local freight rates reveal signs of minor decrease in the near term, he added.

The gain in overall diesel/gasoil exports for the week did offset some increments in overall imports, with volumes heading to Indonesia and Malaysia still robust due to lower refinery runs from prepared maintenance activities.

Russia-origin cargoes emerged for the 3rd straight week, including on to the stock build-up.

Russia filled an unprecedented high volume of diesel/gasoil to Singapore in the past 5 years, LSEG shiptracking data revealed.

The majority of these need to be high-sulphur diesel or marine diesel, one source said.

Jet fuel/kerosene-wise, net exports also slipped by around 15%, mirroring the decreases in overall exports by the very same margin.

Most of these volumes were headed to Bangladesh and New Zealand for the week. ( 1 lot = around 7.45 barrels for gasoil). ( 1 heap = around 7.88 barrels for jet fuel/kerosene)

(source: Reuters)