After weeks of what some may have called unexpected strength,fuel oil and bunker fuels at Singapore posted 14-18% week-on-week price dips.The price for 92-octane gasoline took a nearly-7% dive while naphtha,5K-ppm-sulfur gasoil,and jet/kerosene spot prices all fell by less than 3%.Gasoil differentials were supported by strong buying interest,with continued reports of Saudi Arabia seeking products since it reduced domestic refining rates after the Sept.14 attacks on its oil installations.Cracks on 10-ppm-sulfur gasoil hit $18.34/bbl on Sept.27—45￠/bbl higher on the week but lower than the multi-year high of $19.14/bbl reached on Sept.19.Data from China's General Administration of Customs and from the Indian Oil Ministry's Petroleum Planning and Analysis Cell showed the countries’diesel exports fell in Aug.,helping to tighten the Asian market.Refinitiv data indicated refining margins in Singapore averaged over |7.50/bbl during Sept.1-23—the highest monthly average in two years.Some traders point to the anticipation of surging demand for marine gasoil in Jan.when the IMO's 0.5%-sulfur cap takes effect,but others are looking at more recent forecasts that suggest very-low-sulfur fuel oil will be the bunker of choice when the new regulation comes into force.Sushant Gupta of consultancy Wood Mackenzie expects Singapore's gasoil supplies to be short next year due to marine demand,but says they are currently in surplus.Enterprise Singapore reported middle distillate inventories in Singapore jumped to a 25-month high during the week to Sept.25 and are over 3.5MM bbl higher on the year.Jet fuel cracks to Dubai crude ended the week 8￠/bbl lower at $17.89/bbl.More forecasts for warm temperatures in Japan will limit the country's demand for heating fuel kerosene.
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