According to a report from Reuters, Singapore experienced an 8 percent increase in its middle distillates stockpiles, marking the highest level since September 2021.
The net exports of diesel-gasoil and jet fuel-kerosene witnessed a significant decline of 98 percent and 26 percent, respectively.
In Singapore, inventories of gasoil-diesel and jet fuel-kerosene surged to 10.787 million barrels, up from 9.99 million barrels the previous week.
The rise in diesel-gasoil imports, particularly from South Korea and China, contributed to the decrease in net exports.
March-loading cargoes are anticipated to rise for the third consecutive month, suggesting sustained price pressures across Asia.
The South Korean arbitrage currently offers more favorable conditions compared to that from the Middle East to Singapore, impacting diesel spreads and moving towards a contango structure.
Diesel imports from the Middle East and India also played a part in the overall imports. Meanwhile, diesel exports decreased by approximately 4 percent, attributed to reduced volumes to regional destinations, while jet fuel-kerosene exports from China further contributed to the decline in net exports.
China-origin cargoes are expected to persist into April, with several major Chinese refineries initiating spot sales.
