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Singapore’s middle distillates stocks at year’s high

  • Mercados: Freight, Oil products
  • 09/07/10

Singapore's onshore inventories of middle distillates rose to their highest level this year amid firm exports from China and India. This is adding to supplies within Asia with scarce arbitrage opportunities to Europe or the US.

Stocks of middle distillates, comprising jet-kerosine and diesel, rose by 694,000 bl to 15.62mn bl in the week to 7 July. Stocks of light distillates, which include gasoline, reformate and naphtha, rose to a nine-week high of 11.4mn bl. Exports from China more than doubled to 530,000 bl, up from 214,500 bl a week earlier.

Diesel exports from China, India and Malaysia to Singapore were above 111,000 bl in the latest week. China is expected to keep exports high as its annual fishing ban that started last month cuts into demand and spur exports.

A lack of viable economics to divert surplus diesel to Europe left sellers with ample supplies. The vessel Amu Spirit was failed by an undisclosed charterer to move 670,000 bl of diesel to northwest Europe, loading from South Korea on 2 August.

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