Refined oil product stockpiles at Fujairah in the UAE stood at 23.14 million barrels as of Monday, down 11 percent from a record-high last week, with jet fuel and other middle distillates showing the biggest percentage drop ever, according to data released Wednesday from the Fujairah Oil Industry Zone.
Middle distillates stockpiles slumped 42 percent week on week to 1.962 million barrels as of Monday, the biggest weekly decline since the data compilation started in January 2017, according to figures compiled by S&P Global Platts. Total stockpiles had been at a record 25.98 million barrels a week earlier.
There is tight supply of jet fuel (kerosene) in the Middle East owing to scheduled refinery maintenance in the first quarter, Platts previously reported. The overall demand is still seen as tepid as global carriers have been forced to ground more flights due to the widespread coronavirus outbreak.
Middle distillates also includes gasoil, diesel and marine bunker gasoil.
Stockpiles of heavy distillates, such as fuel oil used for marine bunkers and power generation, stood at 13.556 million barrels as of Monday, down 11 percent from a three-month high a week earlier.
Marine fuel oil prices declined last week, with the Fujairah delivered marine fuel 0.5 percent sulfur dropping to a record low of US$415/mt, according to Platts assessments. The key ports of Singapore and Fujairah saw inquiries pick up at the start of this week in line with higher crude oil prices, Platts reported previously.
"We are seeing more inquiries in the last three to five days in Fujairah," a Middle Eastern trader said. "Mainly demand is improving and there are off-spec cargoes which can’t be used until blending is done to correct that."
Stockpiles of light distillates, which includes gasoline, naphtha and other light petrochemical feedstocks, rose three percent to 7.622 million barrels.
All 11 commercial terminal operators in Fujairah participate in the weekly stock reporting, as requested by FOIZ. The stockpiles include storage volumes involved in activities such as blending and refining.
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