Singapore’s jet fuel imports likely reached multi-year highs in December last year, with India emerging as the top supplier, according to trade sources and shiptracking data. This surge comes as arbitrage opportunities to Europe remained closed, keeping the fuel within Asia.
As a pivotal trading and storage hub for refined fuels in Asia, Singapore’s import levels are a key indicator watched by market analysts. The influx of jet fuel has been notable, with the shift influenced by both local demand and international supply dynamics.
Trade sources, speaking on condition of anonymity, suggest that the robust supply to Singapore, coupled with expectations of increased exports from China following the receipt of the first batch of 2025 export quotas by Chinese refiners last week, could exert downward pressure on Asia’s spot jet fuel prices.
The increased supply has also impacted price differentials, with the regrade — the spread between jet fuel and 10-ppm gasoil prices — moving into negative territory since mid-December. Over the past two weeks, this spread has averaged discounts of 80 cents per barrel, a stark contrast to the November average premium of 80 cents per barrel.
This development in the jet fuel market could have broader implications for regional fuel pricing strategies and inventory management in the coming months.
Key Points:
- Record Highs: Singapore’s jet fuel imports likely hit multi-year highs in December last year.
- India’s Role: India was the top supplier due to closed arbitrage opportunities to Europe.
- Market Impact: Increased supply might lead to lower jet fuel prices in Asia.
- China’s Influence: Expectations of higher exports from China after receiving 2025 export quotas.
- Price Dynamics: The regrade between jet fuel and gasoil has turned negative, with recent discounts averaging 80 cents per barrel compared to November’s premium.
