<article><p class="lead">Singapore's oil product exports rose to a three-month high in June, boosted by stronger shipments across the barrel with fuel oil and jet fuel deliveries hitting new highs.</p><p>Total oil product exports from the city state hit a three-month high of 1.37mn b/d in June compared with 1.14mn b/d in May, according to GTT data, while Singapore's oil product imports reached 1.76mn b/d, up from 1.37mn b/d in May.</p><p>The June shipments out of Singapore were bumped up by a spike in fuel oil exports, which rose to an eight-month high of 350,000 b/d. They were last higher in October 2020 at 419,300 b/d. The rise was mainly driven by higher exports to China, which hit a one-year high of 72,900 b/d. Volumes to China were last higher in June 2020 at 78,000 b/d. Chinese independent refiners were <a href="https://direct.argusmedia.com/newsandanalysis/article/2223415">increasing purchases of straight-run fuel oil</a> for June-July delivery after a <a href="https://direct.argusmedia.com/newsandanalysis/article/2217681">new consumption tax on diluted bitumen imports</a> and a government crackdown on state-owned firms reselling crude import quotas to independents squeezed availability of alternative feedstocks.</p><p>Meanwhile, Singapore's fuel oil exports to Hong Kong rose to an 11-month high of 46,360 b/d in June. Exports were last higher in July 2020 at 68,200 b/d. The increase likely came after Hong Kong <a href="https://direct.argusmedia.com/newsandanalysis/article/2225284">lifted its Covid-19 restrictions</a> for bunkering operations in June. Singapore also exported 7,700 b/d of fuel oil to South Africa in June, after its last shipment of 6,200 b/d to the country in March.</p><p>Jet fuel exports from Singapore reached a seven-month high of 65,000 b/d in June, the highest monthly volume since November 2020 when the city-state exported about 85,900 b/d of jet fuel. </p><p>The uptick came as countries like Australia and Malaysia drew more supplies from Singapore, with Australia taking about 78,500t (20,600 b/d), accounting for nearly one-third of all jet fuel exports from the city-state in June. This is also the highest volume that Australia has taken from Singapore since the Covid-19 pandemic struck last year. </p><p>The travel outlook in Australia remained optimistic in early June as there was talk of reopening an air route with Singapore during the month, on top of Australia's travel bubble with New Zealand. The two countries issued a joint statement earlier that month to work towards resuming cross-border travel. But the plans were soon disrupted by fresh Covid-19 outbreaks in Australia and later in Singapore.</p><p>Jet fuel exports are on track to slow in July-August as the renewed Covid-19 outbreaks in Australia and southeast Asian nations may weigh on demand for the fuel. New Zealand has also <a href="https://direct.argusmedia.com/newsandanalysis/article/2237083">paused its quarantine-free travel bubble with Australia</a>, dealing a blow to emerging signs of jet demand growth from the arrangement.</p><p class="bylines">By Cara Wong and Sarah Giam</p></article>
