SINGAPORE DATA: Middle distillate stocks fall 6% WOW to 7.91 mil barrels

Singapore's onshore commercial stocks of middle distillates fell 6.12% week over week to 7.91 million barrels over Aug. 27-Sept. 2, even as imports of both gasoil and jet fuel surged during the period, data from Enterprise Singapore showed Sept. 3.

Gasoil imports surged to an over four-month high of 334,572 metric tons in the week of Aug. 27-Sept. 2 and were last recorded higher in the week of April 9-15 at 395,676 mt, historical data showed.

The increase came amid an influx of imports from North Asia, led by South Korea at 132,405 mt and followed by China at 52,532 mt, Taiwan at 42,301 mt and Japan at 8,638 mt, Enterprise Singapore data showed.

Imports from Malaysia also jumped to 98,695 mt, compared with 3,176 mt the previous week.

Singapore's gasoil exports declined 13.70% to 341,531 mt in the week of Aug. 27-Sept. 2, from 395,756 mt the previous week, which was a 10-week high.

South Africa received the bulk of the volumes at 89,278 mt. The ongoing conflict in the Middle East has created an opportunity for arbitrage flows from Asia to Africa amid a widening exchange of futures for swaps spread, according to middle distillate traders.

Platts, assessed the front-month gasoil EFS — the spread between Singapore 10 parts per million sulfur gasoil swaps and the corresponding ICE low sulfur gasoil futures contract — at an average of minus $134.95/mt over Aug. 27-Sept. 2, compared with minus $102.97/mt the previous week. A steeply discounted EFS spread typically indicates more economically lucrative flows toward the West of Suez.

Australia and Malaysia followed, receiving fewer volumes week over week by 10.88% and 32.24%, respectively, at 52,560 mt and 49,993 mt.

Export volumes to Indonesia, however, jumped 155.34% to 45,765 mt.

Myanmar, Bangladesh and the Philippines followed at 31,454 mt, 25,649 mt and 16,981 mt, respectively

The remaining exports, totaling 29,847 mt, flowed to six other countries, led by Mozambique at 14,533 mt and Cambodia at 7,104 mt.