Singapore light end stocks fall 8%, middle distillate stocks hit 1-yr low

London, (Quantum Commodity Intelligence) – Light distillate stocks held by major storage companies in Singapore fell 8% in the week to 28 April, the second biggest weekly draw this year.

Stocks of light ends, such as gasoline, gasoline blendstocks, naphtha and liquefied petroleum gas, fell by 1.1 million barrels by Wednesday to 12.39 million barrels, data from Enterprise Singapore showed.

The draw is the second successive week where stocks have fallen by more than 1 million barrels, leaving inventory down 13% on the month.

Quantum data shows that naphtha cracks have rallied strongly over the same period, with the May crack – CFR Japan May swaps versus July cash Brent - rising almost 10% since May 21 to $92.58/mt.

Conversely, gasoline spot and front month cracks have fallen over the course of the week, according to Quantum data, with the May crack – May swaps FOB Singapore versus July cash Brent - slipping 10%.

Similar chunky draws were seen in middle distillates, with stocks held by the 13 major oil and storage companies in the city state falling 4% in the week to 28 April to 24.559 million barrels.

Fuel oil stocks also fell, although only by 1% to 24.559 million barrels. The weekly stock figure remains at the second highest level so far this year as exports from the hub have stalled.