The total volume of Singapore refined oil product swaps traded during the Platts Market on Close assessment process in November fell 40.2% month on month to 24.83 million barrels, led by a plunge in traded gasoil swaps, S&P Global Platts data showed Tuesday.
Traded gasoil swaps posted the largest month-on month fall of 64.3% to 10.05 million barrels, but were still up 111.58% year on year, Platts data showed.
The Asian gasoil market remained weak for much of November, weighed down by sluggish demand and ample availability. Regional buyers were said to be procuring only on a need-to basis, while higher exports from India and China and annual year-end destocking kept the market comfortably supplied.
In addition, unviable arbitrage economics to move cargoes west due to high freight rates and strong east/west spreads trapped surplus barrels in the region, exacerbating the supply overhang.
Meanwhile, the volume of traded jet fuel swaps posted the largest month-on-month rise in November, surging 111.54% to 2.75 million barrels, the data showed.
The Asian jet fuel market languished in discount territory in November amid poor pre-winter demand in Japan and ample supply, but some traders expect cash differentials to recover in the near term as winter demand kicks in.
“Winter demand will always be there; it’s just how much and when,” a trader in Singapore said.
Traded gasoline swaps fell 17.87% on month to 5.01 million barrels in November and were down 36.26% on year, while traded fuel oil swaps rose 10.79% on month to 6.47 million barrels and were down 25.89% on year.