Oil product stockpiles held in Singapore, Asia's key fuel trading hub, extended declines as residual fuel and middle distillates inventories both fell, government data on Thursday showed.
Total onshore oil product stocks hovered at around 37.95 million barrels in the week of July 29, compared with 39.64 million barrels a week ago, Enterprise Singapore data showed.
Oil and product markets remained on tenterhooks as the Middle East conflict raged on, and shipping risks at both the Bab el-Mandeb and Hormuz Strait remained prevalent in the near-term, which could in turn curb global refinery runs and production.
Middle distillates inventories eased for a second straight week, slipping to their lowest in two months of around 7.7 million barrels.
Net exports of diesel and gasoil declined by 3 per cent, while jet fuel and kerosene net exports grew by more than two times since a week earlier.
Diesel and gasoil cargo inflows were mainly from South Korea, India and Malaysia, while exports were to Vietnam, New Zealand and Malaysia.
India's July diesel loadings to Singapore are set for their lowest level in five months, with more shipments expected West for now, preliminary shiptracking data showed. However, more South Korea and China-origin barrels are expected in the next two weeks.
Residual fuel oil inventories retreated to a six-week low despite a rise in net imports, with levels down 6.8 per cent week on week at 18.13 million barrels (2.86 million tonnes), the data showed.
Total fuel oil imports gained 12.1 per cent to about 971,000 tonnes. Imports recorded from Saudi Arabia surged from the previous week, totalling nearly 160,000 tonnes, making it the top supplier in the week, followed by the UAE at 90,000 tonnes.
Meanwhile, total fuel oil exports from Singapore tanks fell 57.4 per cent to about 150,000 tonnes, with Bangladesh and Vietnam becoming the main outlets for the week.
Singapore's fuel oil markets remained steeply backwardated for the front months, in which prompt prices are higher than future prices.
Light distillate inventories, including naphtha and gasoline, rose to 12.084 million barrels in the week to July 29, for the first time after falling for four straight weeks as strong naphtha imports of about 255,000 tonnes (~2.3 million barrels) far exceeded exports of just 2,800 tonnes.
The largest naphtha supply source was Russia, at nearly 82,000 tonnes, followed by Malaysia at around 35,000 tonnes.
Singapore's imports of gasoline totalled about 194,000 tonnes (~1.6 million barrels), while exports reached roughly 438,000 tonnes, making the city-state a net exporter of around 244,000 tonnes.
Outbound volumes were led by Indonesia at about 131,000 tonnes, followed by Australia at nearly 117,000 tonnes. Gasoline inflows were led by Taiwan at nearly 60,000 tonnes, followed by Saudi Arabia at about 38,000 tonnes.
(Reporting by Trixie Yap, Jeslyn Lerh and Mohi Narayan; Editing by David Holmes)
