Singapore light distillate stocks reach record highs amid weak gasoline demand
Onshore light distillate inventories in Singapore rose to a record 19.474 million barrels this week. High refinery output and weak demand drove the surge.
Singapore 
SG's light distillate inventories reached a record high of 19.474 million barrels in the week to February 18, according to data released by Enterprise Singapore. This represents a weekly increase of 1.496 million barrels, a surge driven by a significant market structure shift that has incentivized storage over immediate sales.
SG's light distillate inventories reached a record high of 19.474 million barrels in the week to February 18, according to data released by Enterprise Singapore. This represents a weekly increase of 1.496 million barrels, a surge driven by a significant market structure shift that has incentivized storage over immediate sales.Market participants noted that a deep contango in the gasoline market, which reached its widest level since June 2020, has been a primary catalyst for the buildup. This price structure, where future prices are higher than current spot prices, has encouraged major oil and oil storage companies to engage in rolling and storage behavior. Analysts from LSEG and Wood Mackenzie have highlighted that this environment makes it more profitable to hold stocks rather than sell into a currently weak market.
