MOSCOW (MRC) -- Middle distillates stocks held at key storage hub Singapore slipped by 7.5% week on week as robust jet fuel outflows outweighed a surge in gasoil total imports from regional sellers, said Hydrocarbonprocessing.
Inventories of gasoil and jet fuel/kerosene were 7.989 million barrels (1.072 million metric tons) in the week ended Aug. 30, down from 8.635 million barrels a week ago, the data added. Jet fuel/kerosene net exports surged by around 54% week on week to above 65,000 tons as outflows to Malaysia grew.
Cargo flows to the Pacific region continued from the previous week, with key destinations being Australia, Fiji and New Zealand.
Cargo outflows to the Pacific will likely be little changed in the near term as international travel remains steady, especially as China encourages more international group travel to regions including Australia, a Singapore-based analyst said.
Below are the top contributor countries for jet fuel/kerosene exports in the week and their respective volumes (in tons): Gasoil-wise, total import volumes continued to climb - in line with earlier expectations and shiptracking data - as lucrative profits continue to draw sellers to offload cargoes into Singapore.
India volumes into Singapore remained almost steady week on week, with expectations of more arrivals until the first week of September, shiptracking data from LSEG and Kpler showed. At least two more vessels carrying up to 100,000 tons of gasoil will arrive in the next two weeks, shiptracking data from Kpler showed.
Malaysia-origin cargoes also resumed as refinery operations stabilized after some earlier unplanned outages, one trading source said.
Small volumes from Oman resurfaced after a one-month hiatus, but more are not expected to come given stronger seller margins to the West-of-Suez markets since two weeks earlier, a second source said. No September loadings from Oman to Singapore have been recorded so far on shiptracking data from LSEG.
Gasoil volumes from China to Singapore remained absent in the week, with key China oil majors selling their cargoes to other southeast Asian regions instead, one trading analyst said. Below are the top contributor countries for gasoil imports in the week and their respective volumes (in tons): Total gasoil exports fell by almost 12% week on week on lower outflows to regions including Australia, Hong Kong and Myanmar.
We remind, Sinopec Corp, is not interested in acquiring Shell's refinery or petrochemical plant in Singapore although it is keen on participating in a shale gas project in Saudi Arabia. Sinopec President Yu Baocai was speaking after sources last week told Reuters that Shell had hired Goldman Sachs to advise on a potential sale of its Singapore assets and that Sinopec was among the companies reviewing them.