While Asia’s energy demand rebound has led the world, much of that has come from China, with other economies in the region struggling to emulate its rapid recovery. Poor refining margins, earlier contango plays and a diversion of cargoes from weaker markets to Asia are all feeding the growing hoard of crude oil and fuels.
(June 26): For an insight into Asia’s oil demand recovery and the health of global energy markets, look no further than the fluctuating volumes and shifting composition of the hoard of crude and fuel floating off Singapore.
Some 82.5 million barrels of crude and oil products were sitting in 67 vessels parked off Singapore and in the Malacca Strait as of Tuesday, according to data intelligence firm Kpler. That’s up from 69.8 million barrels at the end of May. The floating stockpiles fluctuate in size as Asian buying interest is countered by the arrival of more shipments.
