- Oil product stockpiles at the UAE’s Port of Fujairah have dropped to a six-week low.
- Air conditioning demand in the sweltering Middle East reduced supplies of fuel oils for power generation.
A recent news article published in Platts by Elza Turner and Tahani Karrar states that Oil products stocks fall on high Middle East demand.
Data from the Fujairah Oil Industry Zone
Total inventories stood at 21.176 million barrels as of July 5, down 8.2% from a week earlier and the lowest since May 24, data from the Fujairah Oil Industry Zone, or FOIZ, at the port on the UAE’s east coast showed July 7.
Temperatures are rising throughout the Middle East, leading to increased demand of fuels for power generation to run cranked-up air conditioners.
Gasoil supply in the Middle East is unlikely to increase
Meanwhile, gasoil supply in the Middle East is unlikely to increase over the coming months as demand uncertainties linger over further lockdowns in Asia and Europe, trading sources close to refineries said this week.
One trading source said that gasoil demand in the Middle East remains “sideways”, supported mainly by buyers such as South Africa, Kenya and Tanzania.
Refineries are not raising production due to weak margins and demand uncertainty in the coming months, another source said.
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Source: Platts
