Press

Singapore’s oil product inventories slump to near 13-year low

Published22 MAY 26 - 10:30 Reading time  minutes

“The arbitrage picture for European jet supply remains tight. All Asian loading routes are closed into Europe in the prompt and largely so into the medium term.” — James Noel-Beswick, Head of Commodities at Sparta Commodities

  • Expert: James Noel-Beswick (Head of Commodities, Sparta)
  • Publication: Reuters
  • Market Focus: Jet Fuel, Refining Margins, East-West Arbitrage, Freight Intelligence
  • Geographies: Asia, Europe, South Korea, France, Strait of Malacca

In a recent analysis for Reuters, Sparta’s Head of Commodities, James Noel-Beswick, warns that the arbitrage picture for European jet supply remains tight despite the first Asian cargo heading West since the Iran war began. With shipping costs running at around $40/mt and price spreads between Asia and northwest Europe at just $20–30/mt, the arb is theoretically closed. The 745,000-barrel Vitol cargo — loaded from Yeosu and bound for France — is an outlier, not a signal of recovery. Traders should watch whether the arb re-opens as Asian refinery runs recover and whether European commercial stocks can hold without sustained East-West flows resuming.

Read the full article in Reuters

Topics Distillate
Author

James Noel-Beswick

Head of Commodities

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