Singapore's oil product stocks hit over 9-month lows as US-Iran war cuts supply

SINGAPORE — Oil product stocks in Asia's oil hub Singapore hit their lowest in more than nine months after the US-Iran war curtailed Middle East crude and fuel exports, official data showed on Thursday (May 7).

Combined onshore oil product stocks totalled 44.83 million barrels in the week to May 6, the lowest since late July 2025, Enterprise Singapore data showed.

Stocks for light and middle distillates — gasoline, diesel and jet fuel — slid last week while residual fuel inventories held near a one-year low as imports from the Middle East remained near zero.

Residual fuel inventories — the most stored oil product in Singapore storage tanks that typically goes into ships as marine fuel — totalled 19.88 million barrels, up 387,000 barrels on the week, hovering near the 50-week low of 19.488 million barrels in the previous week.

"Residue inventories are coming off, likely from the effect of lower fuel oil yields from the refineries that have needed to switch to a lighter crude diet," said June Goh, senior oil market analyst at Sparta Commodities.

"This trend is likely to continue as medium sour crude from the Middle East remains fairly limited in supply," Goh added.

Fuel oil traders have been sourcing more supplies from the West after the war crimped shipments from key Middle Eastern exporters such as Iraq and Kuwait.

Diesel, jet fuel stocks fall, but hold above 2025 average

Middle distillates stocks fell 844,000 barrels to 10.077 million barrels from last week, though they held above last year's average of 9.55 million barrels.

The city-state turned into a net gasoil importer for the first time in almost three months, as total imports rose more than two times from a week earlier, while total exports fell by five per cent from a week earlier.

The imports were mostly from India and Oman while some cargoes came from Egypt, which is unusual.

"Elevated Asian premiums drew in barrels from outside the region, helping to ease the immediate scramble for prompt supply," said FGE NexantECA analysts in a client report late last week.

As for jet fuel, net exports rose 91 per cent week on week to around 46,800 tons (368,784 barrels), the data showed.

North Asian refiners are expected to increase middle distillate exports in May although volumes remained lower than pre-war levels.

Gasoline exports to Asia Pacific rise

Meanwhile, Singapore light distillate inventories fell to a 19-week low as net gasoline exports sharply outpaced imports, with strong outbound flows to regional markets such as Indonesia, Malaysia, Australia and Vietnam draining stocks.

Gasoline exports stood at about 479,000 metric tons (about fur million barrels) in the week, far exceeding imports of roughly 288,000 tons, with Indonesia alone taking nearly 219,000 tons, while inflows from key suppliers including Saudi Arabia, South Korea and Japan failed to offset the drawdown.

Naphtha inventories likely edged higher as imports of about 176,000 tons (1.6 million barrels) exceeded exports of around 50,000 tons, with cargoes arriving from China, Malaysia, Trinidad and Tobago and the US outweighing outbound shipments mainly to Malaysia and South Korea.

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