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22 June 2024

Fujairah oil product stocks rise 6% on week to two-week high


Oil product stockpiles at the Port of Fujairah rose 6.1 per cent week on week to 24.65 million barrels Monday, marking the highest level in two weeks, according to data exclusively obtained by S&P Global Platts today.

The gains were led by light distillate stocks jumping 24 per cent week on week to 7.466 million barrels, an eight-week high, and middle distillates rising 16 per cent to a three-month high of 4.121 million barrels, data from the Fujairah Oil Industry Zone, FOIZ, showed.

The increases more than offset a 4 per cent decline in heavy distillates and residues to 13.063 million barrels, which were at the lowest level since 9th March.

UAE-based traders said they expect demand for bunker fuel to give some support to the heavy distillate market over the next few weeks, as movement restrictions to contain the coronavirus pandemic were eased in the UAE.

Demand in the region typically slows during the holy fasting month of Ramadan, which began 24th April.

A record US $35/mt spread in delivered bunker prices for 0.5 per cent sulphur marine fuel was seen on Friday last week between Singapore and Fujairah, as supply cancellations by embattled Singaporean oil trader Hin Leong's bunker arm, Ocean Bunker Services, led to higher prices at the Asian port. The spread was US $20/mt yesterday, according to Platts data.

In light distillates, the LR tanker Analipsi Lady is set to load gasoline early May for a Ruwais to Singapore voyage, while Norstar Invictus was provisionally booked for mid-May loading for a Yanbu, Saudi Arabia, to Singapore voyage, shipping sources told Platts.

In middle distillates, gasoil was moving from the Gulf and India to Asia, prompted by favourable arbitrage economics, traders said. With several countries in Asia extending lockdowns, end-user demand for gasoil outside of the industrial and commercial sectors is limited, sources said.

Platts holds exclusive rights to publish Fujairah oil inventory data, and has deployed a blockchain network for its collation.