Oil Product Stockpiles Drop 1.5% after Second-Highest Annual Exports

Credits: Esmonde Yong/ Unsplash
  • Singapore top destination for 2022 exports
  • Light distillates stocks drop 9% for week
  • Heavy distillates gain for first time in three weeks

Oil product stockpiles at the UAE’s Port of Fujairah dropped 1.5% in the week ended Jan. 2, after exports for 2022 reached the second-highest on record, according to Fujairah Oil Industry Zone and Kpler data, reports SP Global.

Heavy distillates Vs Light distillates

Light distillates including gasoline and naphtha led stockpiles lower, falling 8.6% in the week ended Jan. 2 to 6.827 million barrels, a two-week low. Middle distillates such as jet fuel and diesel rose 1% over the same period to 3.119 million barrels, a three-week high.

Heavy distillates used as fuel for power generation and marine bunkers gained 2.9% to 10.403 million barrels as of Jan. 2, the first increase in three weeks after hitting a six-month low a week earlier.

Bunker demand was subdued over the year-end holidays and strong winds caused some sellers to defer refueling schedules, local bunker suppliers said.

Supply demand

Supplies may continue to increase as delivery lead times were down to four to six days as of Jan. 3, from seven to eight days a week earlier, according to market sources.

The Platts Fujairah-delivered marine fuel 0.5%S bunker premium over the benchmark FOB Singapore marine fuel 0.5%S cargo value was at $37.35/mt Jan. 3, down from an average $38.13/mt during the week ended Dec. 30 and $44.01/mt in the week ended Dec. 23, according to S&P Global data.

Still, there is above-average demand for high sulfur fuel oil, traders said.

“There’s some demand for HSFO and LSFO. Barges have been quite tight across Fujairah currently,” a bunker supplier said.

The Platts Fujairah-delivered 380 CST high sulfur fuel oil bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo assessments was at $48.84/mt Jan. 3, up from an average $42.46/mt in the week ended Dec. 30 and $43.88/mt in the week ended Dec. 23, S&P Global data showed.

Total stockpiles for 2022 jumped 29% for the year, the most on record since FOIZ began providing the data to S&P Global in January 2017.

Light distillates stockpiles led the gains for the year, up 72% followed by a 45% jump for middle distillates and 6.3% increase for heavy distillates.

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Source: SP Global