- Oil product stockpiles at UAE’s Port of Fujairah increased by 10%.
- Platts noted an increase in the Fujairah-delivered marine fuel.
- Iraq emerged as the leading supplier of fuel oil.
In the week ending Jan. 1, oil product stockpiles at UAE’s Port of Fujairah increased by 10%. Light distillates, including gasoline and naphtha, surged by a remarkable 55%, reaching 7.264 million barrels, the highest since Aug.
Conversely, middle distillates like diesel and jet fuel dropped by 21% to 1.987 million barrels, hitting an eight-week low. Heavy distillates and residues for power generation and shipping decreased by 1.9% to 9.953 million barrels, marking the lowest in three weeks, reports SP Global.
Factors Impacting Stockpile Changes
Demand for low-sulfur fuel oil and active selling of high-sulfur oil for shipping contributed to reducing heavy distillate and residue stockpiles. Shipowners preemptively reserved barge slots in anticipation of year-end refueling, expecting higher congestion during the holiday season, leading to longer waiting times for LSFO refueling.
Shipping Demand and Fuel Pricing
The waiting time for LSFO refueling is expected to range from five to seven days, indicating robust bunker demand for January.
Platts noted an increase in the Fujairah-delivered marine fuel 0.5% bunker premium, signaling a rise in demand with December averaging $28.31/mt compared to November’s $20.52/mt.
Inventories and Supply Dynamics
A 16% decrease in inventories in 2023 was attributed to backwardation of products in Q3, hitting a low of 16 million barrels on Sept.
Supply constraints in Q4 due to Middle East refinery maintenance and Kuwait’s Al-Zour refinery temporary shutdown prevented significant stockpile buildups at Fujairah, especially in fuel oil.
Export and Import Trends
Product exports from Fujairah dropped to an average of 671,000 b/d in 2023, primarily due to declining fuel oil shipments. However, exports of other products, excluding fuel oil, surged to a record 459,000 b/d in 2023 from 409,000 b/d in 2022.
Iraq emerged as the leading supplier of fuel oil and other products imported into Fujairah in 2023, while Russia’s fuel oil shipments declined post-sanctions imposed in 2022.
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Source: SP Global
I had a great time with that, too. Despite the high quality of the visuals and the prose, you find yourself eagerly anticipating what happens next. If you decide to defend this walk, it will basically be the same every time.
I had a great time with that, too. Despite the high quality of the visuals and the prose, you find yourself eagerly anticipating what happens next. If you decide to defend this walk, it will basically be the same every time.