FUJAIRAH DATA: Oil product stockpiles drop to two-month low

Stockpiles of oil products at the UAE's Port of Fujairah fell to a two-month low as of June 12, with all categories showing double-digit declines from a week earlier, as exports for most products picked up, according to June 14 figures from the Fujairah Oil Industry Zone and latest shipping data.

Total inventories dropped 20% on the week to 19.566 million barrels as of June 12, the lowest since April 3, the FOIZ data provided exclusively to S&P Global Commodity Insights showed. Total inventories were down 5.3% since the end of 2022.

Heavy distillates used as fuel oil for power generation and shipping tumbled 22% over the week to 9.371 million barrels, a four-month low. Light distillates such as gasoline and naphtha decreased 16% to 6.627 million barrels, a seven-month low. Middle distillates such as diesel and jet fuel declined 18% to 3.568 million barrels, a five-week low, according to the data compiled by S&P Global since 2017.

Oil product exports except for fuel oil from Fujairah averaged an estimated 873,000 b/d in the week started June 5, up from 866,000 b/d a week earlier and the biggest volume for any week since mid-April, according to S&P Global Commodities at Sea data. Singapore was the top destination at 287,000 b/d, followed by South Africa at 139,000 b/d, a record high, the data show. Fuel oil shipments averaged 250,000 b/d in the week started June 5, with 176,000 b/d of it heading to Singapore, the data showed. The week marked the highest fuel oil exports since early May and exports were also up from 152,000 b/d a week earlier, the data showed.

Shipping fuel

Shipping fuel demand for both high sulfur and low sulfur grades has increased lately, extending delivery lead times for HSFO to as many as 11 days forward, compared with average lead times of approximately one to five days, traders said. Some supply is still available within three to five days in some cases, they said.

The Platts Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo assessments averaged $27/mt in the week started June 5, up from $21.37/mt for the week before, according to data by S&P Global.

"LSFO slots [for prompt deliveries] were more limited than before... There's at least a couple of suppliers offering at aggressive prices at very thin [bunker] premiums," a Fujairah-based trader said June 13.

The Platts Fujairah-delivered marine fuel 0.5% sulfur bunker premium over the benchmark FOB Singapore marine fuel 0.5% sulfur cargo values averaged $5.26/mt in the week started June 5, down from $7.36/mt in the week earlier, S&P Global data showed.

Middle distillates stocks are now the only category to have risen so far in 2023 at 15%. Light distillates have dropped 11% while heavy distillates have fallen 7.3% over the same period.