- Heavy Distillates Surge 23% From Multi-Year Trough.
- Middle Distillates Extend Decline, Drop to Five-Week Low.
- Light Distillates Gain 10%, Up Year-to-Date.
Oil product stockpiles at the UAE’s Port of Fujairah saw a 14% increase in the week ending September 22, bouncing back from a record low the week before, according to data from the Fujairah Oil Industry Zone released on September 24. Total stocks rose to 14.922 million barrels, up from 13.089 million barrels, although they are still down 4% compared to the end of 2024, reports S&P Global.
Heavy Distillates Drive Growth
Heavy distillates, which are used as fuel oil for shipping and power generation, surged by 23% to 6.628 million barrels after hitting their lowest point since December 2018 just a week earlier. Even with this rebound, they remain 12% lower than the levels seen at the end of 2024.
Mixed Trends in Middle and Light Distillates
Middle distillates, including jet fuel and diesel, dipped by 2% to a five-week low of 1.618 million barrels, extending their decline this year to 18%. On the other hand, light distillates like gasoline and naphtha rose by 10% to 6.676 million barrels, marking a 10% increase so far in 2025.
Ship Fuel Supply Outlook
The supply of ship fuel has been limited due to reduced Dar Blend crude flows from South Sudan, which supply the refineries in Fujairah. However, there may be some relief on the horizon as the Minerva Ellie is scheduled to discharge crude on October 1 after loading at Port Sudan, according to S&P Global Commodities at Sea.
High Sulfur Fuel Oil Replenishment
The heavy distillate inventories have been bolstered by incoming high-sulfur fuel oil cargoes, a trend that traders expect to continue. Platts, part of Commodity Insights, reported that Fujairah-delivered 380 CST HSFO bunker premiums averaged $13.45/mt in September, compared to $12.50/mt in August.
Limited Supplies Support LSFO
Low-sulfur fuel oil continues to be supported by tight supplies. Platts assessed the premium for Fujairah-delivered LSFO marine fuel over FOB Singapore cargo values at an average of $13.44/mt in September, nearly double the August average of $7.68/mt.
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Source: S&P Global
