- Heavy and light distillates register notable weekly declines.
- Middle distillates rise to a two-week high.
- Fuel oil availability remains ample despite lower inventories.
Oil stockpiles at Fujairah took a dip of 5.3%, landing at 20.652 million barrels for the week ending November 17. This marks the first decrease in three weeks after hitting a six-month peak. Overall, inventories are still 33% higher compared to the end of 2024, reports S&P Global.
Heavy Distillates Take a Notable Hit
Heavy distillates, which are primarily used for power generation and marine fuels, dropped by 7% to 10.239 million barrels, pulling back from a seven-month high. This is the first decline we’ve seen in three weeks, but heavy distillates continue to hold the title of the largest inventory category.
Light Distillates See a Weekly Decline
Light distillates, including gasoline and naphtha, fell by 7.2% to 7.225 million barrels. They’ve been trailing behind heavy distillates for the third week in a row.
Middle Distillates Make a Small Gain
Middle distillates, like jet fuel and diesel, saw a rise of 5.8%, reaching 3.188 million barrels and hitting a two-week high. Since the end of 2024:
- Heavy distillates: up 36%
- Light distillates: up 19%
- Middle distillates: up 62%
Fuel Oil Supply Remains Strong Despite Inventory Reductions
Local traders are noting that the availability of fuel oil cargoes is still robust in both the LSFO and HSFO segments. Weaker demand has ramped up competition among suppliers, putting pressure on prompt delivery premiums.
LSFO Marine Fuel Premiums Keep Dropping
According to Platts data, the premiums for Fujairah-delivered LSFO over FOB Singapore 0.5%S cargoes have shifted as follows:
- $13.15/mt in September
- $11.15/mt in October
- $6.32/mt so far in November
HSFO Premiums Shift from Highs to Negative Territory
The premium for Fujairah-delivered 380 CST HSFO over 180 CST FOB Arab Gulf cargoes has seen quite a swing:
- $0.93/mt in September
- $22.25/mt in October
- –$3.40/mt from November 3 to 18
This sharp turnaround underscores the weakening demand for HSFO in the near term and the fierce competition among suppliers.
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Source: S&P Global
