- Heavy distillates back below light distillates.
- Total inventories up 14% this year.
- Heavy distillates down 13% this year.
Oil products stockpiles at Fujairah in the UAE declined 11% in the week ended Oct. 27, led by a 24% drop in heavy distillates used as fuel oil for power generation and shipping, according to Fujairah Oil Industry Zone data published Oct. 29, reports Platts.
The total fell to 17.756 million barrels, the lowest in three weeks. Inventories are up 14% since the end of 2024.
Oil products stockpiles at Fujairah decline
Heavy distillates fell to 6.494 million barrels from a two-month high a week earlier. Light distillates, including gasoline and naphtha, gained 0.9% to 7.949 million barrels, regaining their lead over heavy distillates, the data showed.
Middle distillates fell 8.4% to 3.313 million barrels from a 16-month high a week earlier.
Heavy distillates have declined 13% since the end of 2024, while light distillates climbed 31% and middle distillates rose 68%, according to the FOIZ data compiled by S&P Global Commodity Insights since 2017.
Recently, above-average downstream bunker demand in both the low and high sulfur fuel oil segments drew down stockpiles, as Fujairah’s physical suppliers captured reasonable refueling volumes over recent trading days, according to traders.
Still, the ample LSFO supplies persistently pose downsides to delivered premiums, with most suppliers also competing to fill prompt availability of barging slots, traders also said.
“LSFO demand is decent, quite a few buyers are out there [sourcing] too,” a Fujairah-based bunker supplier said.
Platts, part of S&P Global Commodity Insights, assessed the Fujairah-delivered LSFO marine fuel premium over the FOB Singapore cargo values averaged $11.75/mt Oct. 1-29, down from $13.15/mt across September.
For the HSFO complex, suppliers managed to fix larger refueling requirements over recent trading days amid healthy demand flows, but buoyed replenishment cargo inflows expected through end-October may continue to cap upsides to premiums, traders said.
The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium to the 380 CST 3.5%S FOB Arab Gulf fuel oil cargoes averaged stronger at $31.59/mt so far in October, up from $13.59/mt in September.
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Source: Platts
