Singapore's jet fuel exports fell to almost a four-year low in December as the Covid-19 pandemic continued to limit regional travel. Singapore exported 139,769t (35,500 b/d) of jet fuel in December, the lowest monthly volume since January 2017, according to Global Trade Tracker data. Exports mostly went to Japan, China and Malaysia. Singapore exported a total of 3.12mn t (67,200 b/d) of jet fuel in 2020, also the lowest since at least 2017. Singapore's onshore middle distillate inventories — comprising gasoil and jet fuel — were at 15.203mn bl as of 30 December, 44.8pc higher than a year earlier, according to Enterprise Singapore data. Singapore's aviation industry has likely been hit harder by Covid-19-related international travel restrictions as it lacks a domestic travel sector.
Singapore Airlines group's carriers transported 85,200 passengers last month, 38.8pc higher than November but 97.6pc lower than December 2019. Singapore and Hong Kong have delayed the start of their air travel bubble because of a rise in Covid-19 cases in the Chinese territory. The first air travel bubble flights were originally scheduled to start at the end of November.
Singapore imported 11,700 b/d of jet fuel in December, a five-month low and down by 62pc from a year earlier. High stock levels in the city-state and more viable arbitrage opportunities to the west have slowed Mideast Gulf jet fuel exports diverted to Singapore instead of their usual northwest Europe destination. Singapore imported a total of 1.99mn t (42,800 b/d) of jet fuel in 2020, 56.9pc higher than in 2019, possibly because jet fuel cargoes were diverted to the city-state from the Mideast Gulf earlier in the year. Outright Singapore jet fuel prices have been at an average $1.54/bl discount to northwest European jet fuel values so far this month compared with a $0.56/bl discount in December. This has also likely discouraged flows to Singapore.
Singapore Airlines and its full-service regional arm SilkAir are continuing to restore flight services, but the group's passenger capacity by the end of April will be just around 25pc of pre-Covid-19 levels in January 2020. Asia-Pacific jet fuel refining margins, or fob Singapore jet fuel swaps against Dubai crude values, averaged $3.97/bl in the first half of January compared with $4.74/bl in the second half of December as a resurgence of Covid-19 cases in various countries has again limited travel activity.