Singapore oil stocks hit near 13-year low amid Hormuz crisis

Singapore Oil Stocks Hit Near 13-Year Low Amid Hormuz Disruptions

Oil product inventories in Singapore, Asia’s largest trading hub, fell to their lowest level in nearly 13 years as Middle Eastern supply disruptions from the US-Iran war continue to drain global storage, according to official data released on Thursday.

Inventories Reach Critical Levels

Combined onshore oil product stocks totalled 34.41 million barrels in the week ending June 10, the lowest since July 2013, Enterprise Singapore data showed. Residual fuel stocks — the most stored product in Singapore’s tanks, used primarily as marine fuel or refinery feedstock — dropped to 14.84 million barrels, an eight-year low.reuters

Net imports of heavy distillates fell 36.3 per cent week-on-week, with no increase in volumes arriving from the Middle East. Middle distillate stocks, including diesel and jet fuel, also declined to about three-month lows of around 6.9 million barrels, down from 7.3 million barrels a week earlier.asiaone

Analysts Warn of Structural Fragility

Sparta Commodities analysts cautioned that stabilization in recent weeks has been superficial. “Recent flows have been stabilised by heavy US exports and vessel repositioning, but these are temporary supports,” they said. “Inventories are being drawn down, key hubs are nearing operational minimums, and geopolitical risks around the Strait of Hormuz remain unresolved.”linkedin

The warnings echo broader concerns raised earlier this year. JPMorgan estimated in April that OECD commercial crude inventories could approach an operational minimum of around 842 million barrels as the Strait of Hormuz blockade persisted. Fortune reported in May that Saudi Aramco had warned global gasoline and jet fuel inventories could reach “critically low levels” ahead of the summer.fortune

Some Relief Expected

Trading sources expect residual fuel inventories to rebound as supply replenishments from western sources increase. More Indian-origin diesel and gasoil barrels are slated to arrive in Singapore during June, with a narrowing east-west price spread making it more profitable for sellers to route cargoes toward Asia rather than west of Suez markets.asiaone

Light distillate stocks, including naphtha and gasoline, already rebounded to a two-week high of 12.66 million barrels, with imports arriving mostly from Saudi Arabia and India. Net exports of diesel grew nearly five-fold from the previous week, with cargoes heading to the Philippines, Vietnam, Australia and Malaysia.asiaone