- Fuel Oil Stocks Jump 17% to Lead Gains.
- Total Product Stocks Cross 20 Million Barrels.
- Light Distillates Rise Amid Steady Demand.
Oil product inventories at the Port of Fujairah have hit their highest point in almost a month, thanks to a notable increase in fuel oil stocks, as reported by the latest figures from the Fujairah Oil Industry Zone, reports S&P Global.
Total Inventories Climb Above 20 Million Barrels
As of May 20, total oil product stocks saw a week-on-week rise of 9.3%, reaching 20.38 million barrels. This is the first time since April 22 that inventories have surpassed the 20-million-barrel mark.
Fuel Oils Lead the Rebound
Heavy distillates and residues, which are mainly used for power generation and marine bunkers, surged by 17% to 10.11 million barrels. This is the highest level for this category since February, indicating a boost in supply availability.
Light Distillates Also Edge Higher
Light distillates, such as gasoline and naphtha, saw a slight increase of 2%, bringing the total to 6.59 million barrels. While the rise is modest, it reflects steady demand in both Asia and the Middle East.
Middle Distillates Show Modest Recovery
Middle distillates, including diesel and jet fuel, experienced a smaller uptick of 2.6%, reaching 3.68 million barrels. Although regional demand remains somewhat subdued, inventories are gradually bouncing back from earlier lows.
Traders Monitor Regional Demand Trends
Market players are keeping a close eye on consumption trends across Asia and the Middle East. Demand for bunker fuel in Fujairah remains strong, while the movements of gasoline and diesel are closely linked to regional economic activity and refinery maintenance schedules.
Fujairah’s Role as a Strategic Hub
Fujairah continues to be a vital global trading and storage hub, and changes in its inventory levels provide valuable insights into the broader supply-demand dynamics in the region and beyond.
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Source: S&P Global
