- Fujairah stockpiles on the UAE’s East Coast tumbled to a nine-month low wiping out gains for the year.
- Stockpiles have dropped for a record seven weeks in a row and have declined a whopping 36% since the record high of 30.71 million barrels.
- Exports of heavy distillates from Fujairah in the week started October 5 soared to 3.39 million barrels.
- Middle distillates stocks, including jet fuel and gasoil, jumped 15% in the week ended October 12 to 4.435 million barrels, a three-week high.
- Light distillates such as gasoline and naphtha were little changed at 6.286 million barrels.
Oil products stockpiles at Fujairah on the UAE’s East Coast tumbled to a nine-month low, wiping out gains for the year as stocks of marine bunkers and fuel for power declined to the lowest in more than a year, reports Platts.
Stockpiles drop to a record low
Inventories as of October 12 stood at 19.686 million barrels, down 4.9% from a week earlier and the lowest since December 30, 2019, according to data released October 14 by the Fujairah Oil Industry Zone.
Stockpiles have dropped for a record seven weeks in a row, falling 26% since August 24 and have declined a whopping 36% since the record high of 30.71 million barrels set on June 1.
Stocks of marine bunkers and fuel for power, under the category of heavy distillates and residues, were at 8.965 million barrels as of October 12, down 15% from a week earlier and the lowest since July 29, 2019.
Heavy distillates climb up
Exports of heavy distillates from Fujairah in the week started October 5 soared to 3.39 million barrels, the most since the week beginning January 13, according to data analytics firm Kpler.
Some 716,000 barrels of fuel oil was destined for China, the biggest shipment to that country since January 13, and Tanzania purchased 344,000 barrels of fuel oil, the most to that country since the week started August 21, 2017.
There were at least two loadings of fuel oil for floating storage in the Fujairah lightering zone in the week started October 5, the Kpler data showed. These ships typically supply bunker barges which then sell bunker clips to vessels.
Fate of Middle and Light distillates
Fujairah bunker fuel with 0.5% sulfur was assessed by S&P Global Platts at $336/mt as of October 13, $5/mt below the Singapore assessment. Fujairah is the most important bunkering area in the Middle East.
- Middle distillates stocks, including jet fuel and gasoil, jumped 15% in the week ended October 12 to 4.435 million barrels, a three-week high.
- Light distillates such as gasoline and naphtha were little changed at 6.286 million barrels.
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Source: Platts
