- Total inventories up 2.2% to 20.30 million barrels
- Light, heavy product gains offset draw in middle distillates
- Lower temperatures, rising outright prices contribute to builds
Refined product inventories at the UAE’s Port of Fujairah increased by 2.2% in the week to Nov. 15, building on the previous week’s record rise to cross the 20 million barrel mark for the first time since July 26, according to Fujairah Oil Industry Zone data provided exclusively to S&P Global Platts.
Total inventories stood at 20.30 million barrels, up from 19.85 million barrels for the week ending Nov. 8, with gains in light and heavy distillates more than offsetting a dip in middle distillates, the data showed.
Heavy distillates
The two-week gain is a sharp rebound from levels seen over the past three months, when total stocks were as low as 15 million barrels on Sept. 20. Seasonal power demand had contributed significantly to draws in heavy distillates, such as fuel oil, but temperatures have moderated in the region as winter nears.
Inventories of heavy distillates, which also include marine fuels, rose 3.6% to 10.88 million barrels for the week, with traders citing some tightness in barge and cargo availability, as well as waning demand due to rising outright prices.
Light distillates
Fujairah-delivered marine fuel maximum 0.5% sulfur was assessed $618/mt on Nov. 16. The price in Fujairah was assessed at a $2/mt premium to Singapore which saw its delivered bunkers on the same basis assessed at $616/mt.
Light distillates, including gasoline and naphtha, rose 3% to 5.84 million barrels, according to the data. Traders said they expect demand for gasoline in Southeast Asia to pick up after several months of COVID-19 mobility restrictions, while Chinese exports could increase as domestic refineries seek to ship more cargoes amid a surge of infections in the country.
Middle distillates
Middle distillate stocks, including diesel and jet fuel, fell 2.8% to 3.58 million barrels, with gasoil fundamentals still supported by strong demand in South and Southeast Asia.
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Source: Platts
