Singapore witnesses 8% increase in middle distillates stockpiles

Singapore witnessed an 8 per cent increase in middle distillates stockpiles, the highest level since September 2021, as per a Reuters report.

Net exports of diesel-gasoil and jet fuel-kerosene decreased by 98  and 26 per cent, respectively.

Gasoil-diesel and jet fuel-kerosene inventories in Singapore rose to 10.787 million barrels from 9.99 million barrels a week earlier.

The surge in diesel-gasoil imports, particularly from South Korea and China, led to a decline in net exports.

March-loading cargoes are expected to increase for the third consecutive month, indicating continued price pressures in Asia.

The South Korean arbitrage is currently more favorable than that from the Middle East to Singapore, affecting diesel spreads and moving towards a contango structure.

Diesel imports from the Middle East and India also contributed to overall imports. Diesel exports decreased by around 4 per cent, with slower volumes to regional destinations, while jet fuel-kerosene exports from China also contributed to the decline in net exports.

China-origin cargoes are expected to continue into April, with some major Chinese refineries initiating spot sales.