Refined oil product inventories at the UAE’s Port of Fujairah increased by 4.7% in the week ending December 23rd, indicating a potential annual gain. This increase suggests a build-up of oil products at the port, reports S&P Global.
Stockpiles Increased
Total oil stockpiles in Fujairah, UAE, increased for the second consecutive week, reaching a three-month high of 18.649 million barrels. This rise was primarily driven by a significant jump in heavy distillates, marking the third double-digit increase in the past four weeks.
Compared to the end of 2023, overall stockpiles have increased by 7.8%. Heavy distillate inventories, used as fuel for power generation and shipping, reached a three-month high of 9.96 million barrels, despite a slight year-to-date decline of 1.8%.
Conversely, middle distillates, including jet fuel and diesel, witnessed a 9.1% decline in the latest week, reaching a four-week low of 2.244 million barrels. Year-to-date, middle distillate stockpiles have decreased by 10%.
Light distillates, such as gasoline and naphtha, also declined by 3.6% to 6.445 million barrels, the lowest level in four weeks. However, year-to-date, light distillate stockpiles have increased by 38% compared to the end of 2023.
LSFO Demand Decent
Refined oil product exports from Fujairah have declined significantly in December, averaging 450,000 barrels per day, the lowest level since February. Key destinations for these exports include Iraq and Pakistan.
Demand for low sulfur fuel oil (LSFO) for shipping in Fujairah remains “decent,” with adequate supplies available to meet immediate refueling needs. A significant cargo of VLSFO from Kuwait’s Al Zour refinery is expected to arrive in Fujairah soon.
The Platts-assessed Fujairah-delivered marine fuel 0.5% sulfur bunker premium has declined from $8.83/mt in the first half of December to $8.32/mt in the second half. This indicates a slight softening of the bunker fuel market in Fujairah.
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Source: S&P Global
