Singapore's onshore stocks of middle distillates have surpassed this year's previous high, underlining a persistent supply glut in Asia-Pacific.
Stocks of middle distillates, comprising gasoil and jet-kerosine, rose for the second straight week in Singapore to increase by 262,000 bl to 15.63mn bl for the week ending 4 August. Inventories had touched 15.62mn bl just four weeks earlier.
Japan's exports of gasoil also more than doubled against a week earlier to 3.1mn bl in the week ending 31 July as the country boosted its refinery runs. South Korea's S-Oil has sold all of its 2.4mn bl August cargoes, more than 2mn bl higher than what the refiner shipped out a month earlier.
Further weighing on the gasoil's market is the east-west arbitrage proving uneconomical on paper. But some of the product is thought to be heading into floating storage in Europe, possibly by traders leveraging on margins on swaps futures exchanges. The United Honor is on time charter to load 670,000 bl of gasoil from northeast Asia in early September to take to Europe, while the M Prosperity is on subjects to make a similar trip taking 670,000 bl from northeast Asia on 15 September at an undisclosed freight rate.
India's attraction as a buyer has cooled, with demand in the agricultural sector typically slowing during the monsoon season. Indian refiners had been increasing imports as they covered production shortfalls following the country's switch to tighter fuel specifications in April.
But fundamentals in the Asian gasoil market are still largely stable, despite the forced shutdown of Taiwan's Formosa Petrochemical's Mailiao refinery because of a fire that has caused product cargo deferrals. Vietnamese term buyer Petrolimex has no immediate plans to cover any shortfall through spot tenders because of the country's high stocks and weak consumption.
Stocks of middle distillates, comprising gasoil and jet-kerosine, rose for the second straight week in Singapore to increase by 262,000 bl to 15.63mn bl for the week ending 4 August. Inventories had touched 15.62mn bl just four weeks earlier.
Japan's exports of gasoil also more than doubled against a week earlier to 3.1mn bl in the week ending 31 July as the country boosted its refinery runs. South Korea's S-Oil has sold all of its 2.4mn bl August cargoes, more than 2mn bl higher than what the refiner shipped out a month earlier.
Further weighing on the gasoil's market is the east-west arbitrage proving uneconomical on paper. But some of the product is thought to be heading into floating storage in Europe, possibly by traders leveraging on margins on swaps futures exchanges. The United Honor is on time charter to load 670,000 bl of gasoil from northeast Asia in early September to take to Europe, while the M Prosperity is on subjects to make a similar trip taking 670,000 bl from northeast Asia on 15 September at an undisclosed freight rate.
India's attraction as a buyer has cooled, with demand in the agricultural sector typically slowing during the monsoon season. Indian refiners had been increasing imports as they covered production shortfalls following the country's switch to tighter fuel specifications in April.
But fundamentals in the Asian gasoil market are still largely stable, despite the forced shutdown of Taiwan's Formosa Petrochemical's Mailiao refinery because of a fire that has caused product cargo deferrals. Vietnamese term buyer Petrolimex has no immediate plans to cover any shortfall through spot tenders because of the country's high stocks and weak consumption.
