Marking the eighth consecutive weekly price drop, VLSFO at Singapore fell by nearly 17 over the week ending Feb. 28. Prices for gasoline and high-sulfur bunkers lost around 15. Naphtha was down by 13.5 while jet/kerosene and ULSD were down by 13, and HSFOs dropped by nearly 12. News of Chinese refiners increasing exports in light of projections for a 35.7 year-on-year decline in domestic demand in 1Q added bearish pressure due to concerns of regional oversupply. The crack to Dubai for 10-ppm-sulfur gasoil tightened by $1.04/bbl over the week to Feb. 28 to end Friday at $9.39/bbl, after having slid to $7.79/bbl on Thursday-a low not seen since April 6, 2016. Cash premiums lost 9￠/bbl over the week to end at 27￠/bbl but the outright price tumbled by $8.78/bbl to reach a 32-month low of $58.61/bbl. Enterprise Singapore reported middle distillate inventories in Singapore decreased from a 20-week high to a three-week low; the data also indicated average inventories for the 52 weeks through Feb. 26 were lower by 15K bbl on the week but higher by 967K bbl on the year.
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