- Oil product stockpiles fell to a 12-week low as of Dec. 13, led by a slump in gasoline, naphtha and other light distillates, according to Fujairah Oil Industry Zone data provided exclusively to S&P Global Platts Dec. 15.
- Freight activity has begun to slow as holidays approach, traders said.
- Middle distillates stood at 2.297 million barrels as of Dec. 13, down 2.2% from a week earlier to a four-week low.
- The category includes gas oil/diesel, jet fuel and kerosene.
According to Fujairah Oil Industry Zone data released exclusively to S&P Global Platts on Dec. 15, oil product stockpiles fell to a 12-week low on Dec. 13, led by a drop in gasoline, naphtha, and other light distillates as reported by S&P Global Platts.
Shipping statistics
As of Dec. 13, total inventory was 15.312 million barrels, down 2.9% from a week earlier and at its lowest level since Sept. 20.
Light distillates led the way, dropping 4.4% to 4.205 million barrels, the lowest level since October 26, 2020.
According to Kpler shipping statistics, exports of the petrochemical feedstock naphtha from Fujairah increased in November, with shipments to Taiwan reaching their highest level since June 2019 and India scheduled to buy its first naphtha from Fujairah since February.
Dwindling supplies
Heavy distillates and residues, which include power-generating fuel and marine bunkers, fell 2.4% to 8.81 million barrels, the lowest level in six weeks.
“In the last week, more of the low sulphur fuel oil complex has been sold as suppliers try to close off their trading positions before the end of the year,” a Fujairah bunker supplier stated. As the holidays approach, freight activity has begun to dwindle, according to dealers.
Singapore, the world’s largest bunkering hub, is also showing symptoms of dwindling supplies. Due to lower inflows in the Asian market, the Singapore 0.5% S marine fuel December-January backwardation has been widening since November and was $13/mt as of Dec. 14, according to Singapore merchants.
Bunker providers in Fujairah have been aggressive sellers to drive sales for HSFO, according to local bunker vendors.
As of Dec. 13, middle distillates were at 2.297 million barrels, down 2.2% from a week earlier and at a four-week low. Gas oil/diesel, jet fuel, and kerosene are all included in this group.
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Source: S&P Global Platts
