FUJAIRAH DATA: Oil product stocks cap record second annual drop

Oil product inventories at the UAE's Port of Fujairah ended 2024 with a 17% slide in the week to Dec. 30, capping a 10% decline for the year after falling 16% in 2023, according to Fujairah Oil Industry Zone data published Jan. 1.

The total dropped to 15.54 million barrels, a three-week low, according to FOIZ data compiled by S&P Global Commodity Insights since 2017. It is the first time on record that stockpiles dropped for a second consecutive year.

The weekly decline was led by a 25% plunge in heavy distillates used as fuel for shipping and power generation, to 7.54 million barrels, also a three-week low, according to the data. The stocks slumped 26% this year, the first decline in three years and the biggest drop on record.

Middle distillates, such as jet fuel and diesel, were down 12% in the latest week to 1.968 million barrels, a six-week low. They dropped 21% this year after falling 19% in 2023.

Light distillates, such as gasoline and naphtha, fell 5.8% to 6.068 million barrels, a five-week low. They expanded 29% this year after falling 37% in 2023.

In shipping, demand for low sulfur fuel oil was considered "lukewarm," although there has been an upturn in recent days, traders said. Despite the low inventories of heavy distillates, supplies of LSFO are considered ample, they said.

The Platts Fujairah-delivered marine fuel 0.5% sulfur bunker premium over benchmark FOB Singapore marine fuel 0.5%S cargo values increased 42% week over week to $12.46/mt on Dec. 31. Platts is part of Commodity Insights. For the year, it averaged $12.69/mt, up 7.9% from 2023.

The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo increased 9.7% over the most recent week to $23.71/mt on Dec. 31. For the year, it averaged $28.23/mt, up 17% from 2023.

Gasoline gains

Refined oil product exports from Fujairah averaged 475,000 b/d in December, the lowest since February, according to Kpler data. Shipments of fuel oils and diesel/gasoil declined, while jet fuel, gasoline and blending components gained month over month.

Iraq was the largest source of imports for the port in 2024, taking over for Iran, with Russia a close second in 2023, according to Kpler. Nigeria also became a source of product imports during the year for the first time.

For 2024, product exports from the UAE port averaged 601,000 b/d, down from 631,000 b/d in 2023 and the lowest since 2020, the data show. Nearly all products showed declines for the year, with fuel oils making up almost half of all shipments and down to 274,000 b/d in 2024 from 305,500 b/d in 2023. Gasoline was among the few gainers, with shipments rising to 147,000 b/d in 2024 from 128,000 b/d in 2023, according to the Kpler calculations.

Singapore remained the top destination, while shipments averaged record annual highs to China, Malaysia, South Korea, Egypt, Indonesia, Bahrain, Maldives, Italy, Cameroon and Greece. At the same time, Croatia, Poland and Canada became destinations for products from Fujairah for the first time.