Middle distillates stocks in key trading hub Singapore were almost steady as a rise in jet fuel/kerosene outflows counteracted a 36% surge in gasoil imports amid the emergence of Oman-origin cargoes, official data showed on Thursday.
Gasoil and jet fuel/kerosene inventories held at 7.848 million barrels (1.053 million metric tons) in the week ended July 19, from 7.865 million barrels last week, official data from Enterprise Singapore showed.
The rise in total gasoil imports was attributed to an increase in volumes coming from China, South Korea and Russia.
More China-origin arrivals could appear, as exports from the country are slated to rise in the near-term, in line with earlier market expectations as sellers cash in better netback for exports compared with imports since end-June.
“The heavier outflow of oil products comes on the back of weaker-than-expected domestic demand, with Chinese refiners likely to push out more diesel cargoes also as export margins improve,” said Refinitiv Oil Research.
The rise in Middle East cargo arrivals from Oman and Qatar week-on-week was attributed to unstable demand from the West earlier for spot lots, given the uncertain supply situation especially in the ARA region ARA/ and volatile arbitrage price differentials LGOAEFSMc1, one trader said.
Gasoil arrivals from Oman to Singapore were last recorded in April this year, the data showed.
Cargo arrivals to Singapore from Middle Eastern countries such as United Arab Emirates, Saudi Arabia and Qatar have been increasing in frequency between May and July this year, compared with the January-May period, the data added.
Russia-origin cargo arrivals were also recorded in the week, with some traders attributing it possibly rising supply from increased production after the ending of the refinery maintenance season.
Below are the top import contributor countries for gasoil in the week and their respective volumes (in metric tons):
Meantime, jet fuel/kerosene exports rose by around 62% on week, supported by continuously healthy outflows to regional destinations especially the Pacific and Vietnam.
Below are the top export contributor countries for jet fuel/kerosene in the week and their respective volumes (in metric tons):
Source: Reuters (Reporting by Trixie Yap and Matthew Chye; Editing by Varun H K)