Singapore middle distillates stocks gain on slow jet fuel, kerosene outflow

By Trixie Yap and Matthew Chye

SINGAPORE, July 13 (Reuters) - Middle distillates inventories at key trading hub Singapore reversed the earlier week's drop and gained on slower jet fuel and kerosene outflows, even though gasoil exports have been more brisk week on week, official data showed on Thursday.

Stock levels of gasoil and jet fuel/kerosene were at 7.865 million barrels (1.056 million metric tons) in the week ended July 12, a rise from 7.687 million barrels a week ago, official data from Enterprise Singapore showed.

Jet fuel and kerosene net exports have fallen slightly more than 27% week on week, with most cargoes still heading to regional destinations such as Australia, Malaysia and Vietnam.

On the gasoil front, total exports were at a three-week high, with net exports up by two times week on week.

Exports to Australia remained prevalent and will continue as buyers there were still replenishing stocks from extended production losses at one refinery unit in Geelong since early June.

Below are the top export contributor countries for gasoil in the week and their respective volumes (in tonnes):

Separately, a surge in gasoil volumes coming from South Korea was recorded for the week at 98,690 tonnes, compared with zero imports a week earlier.

Market views on export flows from South Korea for the remainder of July stayed mixed.

Some traders were still expecting more cargoes from the country given higher refinery runs for July after the maintenance season, but a handful were cautious on the impact of tax exemptions on refiners' export sales for August.

At least two refiners have started diesel sales for August this week, with more cargoes likely to be on offer soon in the coming weeks as they cash in on higher premiums compared with July-loading cargoes.

(Reporting by Trixie Yap and Matthew Chye; Editing by Krishna Chandra Eluri)