Singapore distillates, fuel oil stocks slide

Singapore onshore oil product inventories fell in the week ending April 22. Middle distillate stocks dropped to an eight-month low and fuel oil fell to an eight-week low, data from the International Enterprise showed. The drawdown was attributed to a full-swing refinery maintenance across the region as well as run cuts amidst sluggish demand. Residual fuel stocks fell for the fifth week to an eight-week low of 17.881 million barrels as supplies from Europe and Asia tightened. European arbitrage flows and exports from India are falling due to refinery run cuts, while peak summer demand in the Middle East is channeling barrels into domestic power generation. Singapore light distillate stocks rose to a two-week high at 8.63 million barrels on limited buying interest for spot cargoes from Indonesia. (April 23, 2009)