Singapore’s jet fuel imports likely reached multi-year highs in December last year. India has become the top supplier as its ruling to Europe has been closed, with trade sources and ship tracking data showing.
The import of jet fuel into small city states is a major trading and storage hub for sophisticated fuels in Asia, so the market continues closely.
Strong supply to Singapore and expectations for higher exports from China after refiners received their first batch of 2025 export quota last week, allowing Asian spot jet fuel prices to be weighed , sources have been added that asked for anonymity.
Singapore’s jet fuel imports amounted to up to 2.55 million barrels in December, up from around 2 million barrels the previous month, according to estimates from LSEG, Kpler and trade sources, the majority of supply comes from India and South Korea. It’s there.
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India has diverted jet fuel and kerosene exports from Europe to other parts of Asia as the east and west ruling remains closed, FGE analyst Liu Xuanting said in a memo.
The increase in supply has turned regrowth into negative territory since mid-December, she added.
The spread between jet fuel prices and 10-ppm gasoil, Regrade is an average premium of 80 cents on average, at a discount of 80 cents per barrel over the past two weeks.
Indian refiners usually sell sophisticated products through refined products, and, depending on the arbitrage opportunity, sell these volumes to traders who send to Asia or Northwest Europe.
Exports to Asia to India reached several years highs as they were not exported to Northwest Europe in November.
Exports to Northwest Europe in December were around 1 million barrels, but little has changed from the two-year lows in October.
Some Northeast Asian refiners have switched to selling jet fuel instead of diesel over the past two months, seducing them with a better margin, said a Northeast Asia-based source.
The spread of East and West prices marks the East as a preferred destination for January’s loaded freight, two analysts said.
Some Indian barrels have arrived at Asian coasts this month as buying activities are needed from Northwest Europe, and Asian prices need to be even weaker for Asian prices to resume. It will continue. I said.
Around 600,000 barrels of Indian jet fuel will be heading to Southeast Asia and Australia in January, one shipbuilder said.
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However, some traders expect jet fuel flows from the Middle East and India to northwest Europe will soon emerge as Amsterdam Rotterdam Antwerp (ARA) improvements and storage hub inventory fell by nearly eight months. Masu.
China – The native barrels will fully supply Asian markets over the last two months, and swing suppliers could once again find western outlets, according to a third trade source.
