According to data released by the Fujairah Oil Industry Zone, oil product inventories at the Port of Fujairah declined by 2.8% in the week ending February 3rd. This decrease was primarily driven by a significant 33% drop in jet fuel, diesel, and other middle distillates, reports S&P Global.
Inventories Decline
Total oil product inventories in Fujairah declined to 18.328 million barrels, marking a significant drop from the six-month high recorded the previous week, according to FOIZ data.
Middle distillates inventories fell to a 12-week low of 1.841 million barrels, while heavy distillates, primarily used as fuel oil for power generation and shipping, decreased by 6% to 8.1848 million barrels, reaching a two-week low.
Conversely, light distillate stocks surged by 12% to 8.339 million barrels, reaching their highest level since April 2023. This marks only the second instance since 2019 where light distillate stocks have exceeded heavy distillate stocks.
Total product exports from Fujairah averaged 416,000 barrels per day in the week starting January 27th, a substantial increase from the previous week’s 219,000 barrels per day. Kpler data indicates that Malaysia and Tanzania were the primary destinations for these exports, with fuel oils constituting the majority of the exported products.
Refined product imports averaged 719,000 barrels per day in the latest week, primarily comprising fuel oils and gasoline. This represents a decline from the previous week’s import volume of 860,000 barrels per day. Kuwait, Iran, India, and Iraq were the major source countries for these imports.
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Source: S&P Global
