Singapore's onshore stocks of middle distillates fell to 13.39mn bl in the week ending 22 September, as better arbitrage economics to Europe from Asia helped relieve a supply glut.
Singapore's onshore stocks of middle distillates that include diesel and jet-kerosine fell by 875,000 bl to 13.39mn bl, offsetting part of the 1mn bl rise recorded a week earlier.
Bumper shipments of diesel sailing to Europe from northeast Asia have been provisionally booked for loading dates from 15 September to 4 October. Curbed refinery production in Europe amid maintenance has tightened supply and could attract Asian cargoes.
The bookings to Europe, a main route for shipments of northeast Asian cargoes, helped to counter limited arbitrage opportunities to the US. South Korea saw no exports of diesel to the US in August compared with just 2,400 b/d a year ago even as its refiners' production rose.
Asia-Pacific's gasoil crack spread, or its premium relative to Dubai crude swaps, has risen to its highest level in nearly a month at above $12/bl.
Reduced exports from China have also lent support. China exported around 95,000 b/d of diesel in August, down by 23pc from July as refinery production was scaled back.
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