- Fujairah’s oil data slumped 7.9% in the past week to 23.721 million barrels as of May 6 and is considered to be the biggest drop in five months.
- This decline has been attributed to the large increase to slow shipping demand for fuel because of the Arab embargo on Qatar and sanctions on Iran.
- Stocks of light distillates, including gasoline, retreated 10% week on week, the biggest drop in seven months, to an eight-week low of 10.774 million barrels.
According to an article published by Platts, oil products inventories in Fujairah slumped 7.9% in the past week to 23.721 million barrels as of May 6, the biggest drop in five months.
Steepest drop ever
This steep downfall is led by large declines in gasoline and marine fuels categories, Fujairah Oil Industry Zone data released on Wednesday showed.
This is the biggest week on week decline since the week of November 26, 2018. Inventories reached a record high a week earlier as of April 29.
Slow shipping demand for fuel
Heavy distillates and residues stocks, including bunker fuel, dropped 12% week on week to 10.36 million barrels, reflecting a five-week low and the second consecutive week-on-week decline. Stockpiles of heavy products have jumped 67% since December 31, 2018. A Dubai bunker trader attributed the large increase to slow shipping demand for fuel because of the Arab embargo on Qatar and sanctions on Iran.
Stocks of light distillates, including gasoline, retreated 10% week on week, the biggest drop in seven months, to an eight-week low of 10.774 million barrels. Middle distillates inventories, on the other hand, soared 30% on the week to 2.587 million barrels, the biggest weekly gain since the week of March 11.
Increase in light distillates
Total Fujairah stockpiles were up 37% since the end of 2018, with middle distillates now leading the way with a 77% increase. Light distillates inventories are up by 11% since December 31, 2018.
Light distillates include gasoline, naphtha, and condensates that are stored in white product tanks and have an API of 45 degrees and above. Middle distillates include gasoil, diesel, marine bunker gasoil, jet fuel, and kerosene. Heavy products are fuel oils used for marine bunkers and power generation.
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Source: Platts
