Singapore’s middle distillate stocks fall below 9 mln bbls

Singapore’s middle distillate stockpiles slipped below 9 million barrels for the first time in six weeks as the surge in net gasoil exports offset the decline in net jet fuel/kersosene exports, official data showed on Thursday.

Gasoil and jet fuel/kerosene inventory levels at key oil storage hub Singapore were at 8.87 million barrels in the week ended Dec. 6, down by around 1.5% week on week, data from Enterprise Singapore showed. O/SING1

Net gasoil exports surged by more than 50% from the previous week, as total imports declined at a quicker pace than total exports.

Import volumes from regions such as Malaysia, South Korea and China all slowed from the previous week, with zero imports from Malaysia for the week.

There are heavy market expectations of lower import volumes from China continuing in the coming weeks as diesel export estimates there for December decline to around 500,000 metric tons or less because of a lack of export quotas.

Imports from Vietnam emerged for the first time this year, following an increase in exports from a key refiner there on higher stockpiles after refinery maintenance. nL1N3CG0SJ

Volumes from Oman also resurfaced for the first time since August this year as the arbitrage window to northwest Europe remained volatile in the past month.

On the gasoil export front, volumes were the largest to New Zealand for the week given expectations of strong demand during the summer driving season there.

Exports to Malaysia and Indonesia both continued but were slower week on week.

Separately, exports to the U.S. were likely to be renewable fuels, one trade source said.

Jet fuel/kerosene wise, net exports declined by almost 84% from the previous week on falling total exports by a same margin.

Export volumes to New Zealand and Australia both slowed, contributing to the weaker values.
Source: Reuters (Reporting by Trixie Yap and Ashley Fang; Editing by Rashmi Aich)