FUJAIRAH DATA: Oil product stocks climb for first time in three weeks

Stockpiles of oil products at the UAE's Port of Fujairah rose 2.9% in the week ended Jan. 22, the first gain in three weeks, according to data from the Fujairah Oil Industry Zone.

The total increased to 18.529 million barrels as of Jan. 22, rebounding from a three-week low a week earlier, the FOIZ data published Jan. 24 showed. Stockpiles fell 16% on the year in 2023 after climbing 29% in 2022, according to port data provided to S&P Global Commodity Insights since 2017. Heavy distillates is the only category showing a decline so far in 2024.

For the week ended Jan. 22, light distillates such as gasoline and naphtha climbed 11% on the week to 6.702 million barrels, the first increase in three weeks. Middle distillates such as diesel and jet fuel increased 5% over the same period to 2.715 million barrels, a two-week high. Heavy distillates used as a shipping fuel and for power generation dropped 3% to 9.112 million barrels. So far since the end of 2023, light distillates have climbed 43% after a 55% surge in the first week, middle distillates have increased 8.3% and heavy distillates have dropped 10%.

Exports of products except for fuel oil climbed to 2.8 million barrels in the week started Jan. 15, the highest in two weeks, according to S&P Global Commodities at Sea data. Preliminary data show that some 364,000 barrels of naphtha was headed for Bahrain, the first such shipment since mid-2022. Fuel oil exports came to 2 million barrels for the week, the highest since December, the data shows. Some 429,000 barrels were headed for the US, the first such export since August. Fuel oil was also destined for China for the third consecutive week.

Demand for high-sulfur fuel oil is stronger than it is for the low-sulfur grade, leading to the drop in heavy distillates stockpiles, traders said.

Some sellers of both grades have sold out their allotments for the month, they said.

The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo slipped to average $6.07/mt for Jan. 22-23 from $8.59/mt in the week started Jan. 15, according to S&P Global Commodity Insights data.

Price cuts to move LSFO helped demand, bunker suppliers said.

"Demand [for LSFO] softened since middle of last week, likewise for delivered premiums. But, there's no shortage on the cargo front," a Fujairah-based trader said Jan. 24.

Platts-assessed Fujairah-delivered marine fuel 0.5% bunker premiums over the benchmark FOB Singapore marine fuel 0.5% cargo values averaged $14.97/mt Jan. 16-23, below the $25.95/mt during the first half of January, according to S&P Global data.

"LSFO ex-wharf premiums are still high in double-digits [for February's supply] but deals in the delivered market are intensely competitive these days," a Fujairah-based bunker supplier said Jan. 24.