SINGAPORE: Kuwait‘s October gas oil exports tumbled greater than 30% after hitting a file excessive in September as some provide was diverted to home energy technology, in response to commerce sources, analysts and ship-tracking knowledge.
Exports fell to 490,000 metric tons (104,000 barrels per day) in October, after hitting a file excessive of 720,000 tons in September, Kpler knowledge confirmed, pushed by decrease volumes of very low sulphur gas oil (VLSFO), used to energy ships and generate electrical energy.
The drop in Kuwaiti exports has supported VLSFO costs in Asia, with benchmark Singapore cracks climbing to a four-month excessive of about $13 a barrel by end-October, based mostly on LSEG knowledge.
Kuwait turned a key VLSFO provider globally after it introduced the brand new Al Zour refinery on-line. Nonetheless, the refinery’s third and ultimate crude distillation unit, which began up in July, has but to ramp as much as full capability, commerce sources mentioned.
In the meantime, the low-sulphur output has been diverted to refill tanks on the Doha and Az-Zour energy crops, which switched to burning low-sulphur gas oil from high-sulphur gas oil for energy technology in October, consultancy FGE mentioned.
“VLSFO exports from the Al Zour refinery ought to stay at comparable low ranges in November in comparison with October as shares proceed to be constructed up (domestically),” FGE mentioned.
Asian refiners’ VLSFO margins are anticipated to stay supported within the coming weeks as a result of decrease exports from Kuwait to Asia, it added.
The refiner has not issued any spot VLSFO tenders in current weeks, the sources mentioned, although it ramped up its HSFO export tenders.
Costs for immediate provides have additionally trended greater than costs in future months. In late October, November VLSFO costs in Asia rose to $21 a ton greater than for December, an eight-month excessive for that unfold, LSEG knowledge confirmed.
Exports fell to 490,000 metric tons (104,000 barrels per day) in October, after hitting a file excessive of 720,000 tons in September, Kpler knowledge confirmed, pushed by decrease volumes of very low sulphur gas oil (VLSFO), used to energy ships and generate electrical energy.
The drop in Kuwaiti exports has supported VLSFO costs in Asia, with benchmark Singapore cracks climbing to a four-month excessive of about $13 a barrel by end-October, based mostly on LSEG knowledge.
Kuwait turned a key VLSFO provider globally after it introduced the brand new Al Zour refinery on-line. Nonetheless, the refinery’s third and ultimate crude distillation unit, which began up in July, has but to ramp as much as full capability, commerce sources mentioned.
In the meantime, the low-sulphur output has been diverted to refill tanks on the Doha and Az-Zour energy crops, which switched to burning low-sulphur gas oil from high-sulphur gas oil for energy technology in October, consultancy FGE mentioned.
“VLSFO exports from the Al Zour refinery ought to stay at comparable low ranges in November in comparison with October as shares proceed to be constructed up (domestically),” FGE mentioned.
Asian refiners’ VLSFO margins are anticipated to stay supported within the coming weeks as a result of decrease exports from Kuwait to Asia, it added.
The refiner has not issued any spot VLSFO tenders in current weeks, the sources mentioned, although it ramped up its HSFO export tenders.
Costs for immediate provides have additionally trended greater than costs in future months. In late October, November VLSFO costs in Asia rose to $21 a ton greater than for December, an eight-month excessive for that unfold, LSEG knowledge confirmed.
