Inventories of bunkers and other heavy distillates have dropped at the port of Fujairah amid an increase in demand.
- Heavy distillates stood at 8.6 million barrels as of Monday, the lowest since March 4 and down 13% from a week earlier.
- 380 CST bunker fuel was assessed at $433/mt this week, compared with $466/mt in Singapore and $510/mt in Mumbai.
- Gasoline rose 11% week on week to 8.158 million barrels and middle distillates, such as jet fuel and gasoil, climbed 6.4% over the same period to 2.314 million barrels.
- Total stockpiles dropped 1.5% week on week to 19.072 million barrels as of Monday.
According to an article published in Platts, inventories of marine bunkers and other heavy distillates at the port of Fujairah in the UAE dropped to a four-month low.
Drop amid increasing demand
The data was released at the beginning of the week by Fujairah Oil Inventory Zone showed that the drop in inventory prices comes amid reports of increasing demand.
Heavy distillates, which includes fuels for power generation, stood at 8.6 million barrels as of Monday, the lowest since March 4 and down 13% from a week earlier, the data showed.
Improvement in bunker demand
Bunker demand at the port to date in July is relatively better than in June because of lower prices than at other refueling destinations, S&P Global Platts reported last week. Fujairah-delivered 380 CST bunker fuel was assessed at $433/mt Monday, compared with $466/mt in Singapore and $510/mt in Mumbai.
Peak summer increases demand
“Lower prices than other major ports like Singapore have brought some owners back this month,” a Fujairah-based bunker supplier told Platts. Peak summer air conditioning usage may also be increasing demand from the power sector, according to Alex Yap, senior analyst at Platts in Singapore.
Lackluster demand from China and India
Stockpiles of light distillates, including gasoline, rose 11% week on week to 8.158 million barrels, the third consecutive weekly gain, and middle distillates, such as jet fuel and gasoil, climbed 6.4% over the same period to 2.314 million barrels, the highest since May 27. Demand for gasoil in China and India has remained lackluster, according to a Platts report.
Total stockpiles dropped 1.5% week on week to 19.072 million barrels as of Monday after rising the week before for the first time in six weeks.
Weekly stock reporting
All commercial terminal operators in Fujairah participate in the weekly stock reporting at the request of FOIZ, the Middle East’s largest commercial storage facility for refined products. A total of 11 terminals participate, including storage volumes involved in activities such as blending and refining.
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Source: Platts
