*0.5% Fuel: Ample Supply Weighs on Global Marine Fuel Markets in September*
Supply seems to be the biggest demon of fuel prices as depressed demand from the weak retail sector continues into September, with refiners still confronted with weak refining margins on the low sulfur fuel oil report S&P global Platts. Inventories in Asia are said to rise particularly, with an arbitrage window from the west in early August has markets expecting around 500,000 mt increase in volumes to Singapore.
*Singapore Physical 10 ppm Gasoil Crack Hits Record Low*
Singapore physical 10 ppm gasoil crack to front month cash Dubai hit record low amidst plentiful supply and softening demand, with the level slipping 64 cents day on day to $2.70 according to S&P, bringing the gasoil crack to similar levels to gasoline. Analysts compare this to the cracks of middle distillates, which have enjoyed resilience throughout the pandemic.
*US Crude Exports Rebound above 3.2mn b/d in July*
US exports hit levels of above 3.2 million barrels in July, with China being the top buyer for the US product, this comes as figures for June were at 2.75 million barrels according to US Census Bureau figures, welcome news as the previous 4 months reported declining figures.
*China’s Domestic Flights Recover to Pre-Covid-19 Levels*
Domestic Chinese flights recovered to pre-covid levels with an average of nearly 12,000 flight per day, 95% of year prior levels according to Argus. Whilst domestic flights are in recovery, international flight demand is still weak due to existing lockdown measures. The rise in airline activity has boosted the Chinese demand for jet fuel, which now stands at 698,000 bpd in May after lows of 177,000 in April.