Singapore light fuels inventories fall but supply still ample

SINGAPORE: Singapore light distillates inventories were at a four-week low of 14.95 million barrels in the week to June 24, official data showed on Thursday.However, European barrels arriving in the island reflected weak gasoline demand in the West, according to industry sources.

The data from Enterprise Singapore showed that about 41,000 tonnes of gasoline had arrived from the Netherlands between June 18 and 24.A week earlier, gasoline arrived in Singapore from the United States and Norway, the data showed.

The data also showed that the overall light distillates inventories were currently 18.1% higher from a year earlier.Gasoline from Europe and the United States is not regularly shipped to Singapore unless supplies are in excess or if the specification of the fuel does not meet standards of those regions.

Despite easing lockdown measures, overall summer demand has not returned to levels seen before the coronavirus hit the world earlier this year, said an industry source, who tracks gasoline deals.

The resurgence of the virus in countries which have lifted lockdown measures could also derail demand, sources said.Asia’s gasoline crack sunk to a premium of $2.58 a barrel to Brent crude on Thursday, versus more than $4.50 a barrel in the previous session, Reuters data showed.