Singapore's Middle Distillates Stockpiles Decline to Two-Week Low

Singapore's middle distillates stockpiles have decreased to a two-week low, falling by 1.57% to 11.392 million barrels in the week ending May 1, 2024. The decline is attributed to a significant increase in net exports, with diesel/gasoil net exports nearly doubling and jet fuel/kerosene net exports dropping by 56% compared to the previous week.

Why this matters: This decline in middle distillates stockpiles has broader implications for the regional fuel market, as Singapore is a key hub for oil and gas trade in Asia. The fluctuations in inventory levels can influence demand patterns and prices in the region, affecting various industries and economies.

Official government data released on Thursday reveals that middle distillates stockpiles fell from 11.574 million barrels in the previous week to the current level of 11.392 million barrels. Diesel/gasoil exports were primarily bound for Bahrain, Myanmar, Malaysia, and Australia. In contrast, jet fuel/kerosene exports decreased by 20% week-on-week and were largely bound for Vietnam, the Reunion Island, and Australia.

The absence of fuel imports from Taiwan and Russia, which were the main contributors to fuel imports in the previous week, has also played a role in the decline of middle distillates stockpiles. Total imports of diesel/gasoil saw a significant reduction of 58% week-on-week.

The decrease in middle distillates stockpiles coincides with a softening of the spot jet fuel market in Asia. Cash differentials for jet fuel have been pegged lower at 45 cents a barrel. Meanwhile, the spot gasoil complex has remained largely steady, with cracks hovering slightly above $14 a barrel.

The data for this report was provided by Enterprise Singapore. The developments in Singapore's middle distillates stockpiles highlight the dynamic nature of the region's fuel markets and the impact that shifting import and export patterns can have on inventory levels. As a key hub for oil and gas trade in Asia, Singapore's stockpile fluctuations often serve as an indicator of broader market trends and demand patterns in the region.

Key Takeaways

• Singapore's middle distillates stockpiles fall 1.57% to 11.392 million barrels.
• Net exports increase, driven by diesel/gasoil and jet fuel/kerosene exports.
• Diesel/gasoil exports rise, primarily to Bahrain, Myanmar, Malaysia, and Australia.
• Jet fuel/kerosene exports drop 56%, mainly to Vietnam, Reunion Island, and Australia.
• Spot jet fuel market softens, while spot gasoil complex remains steady.