FUJAIRAH DATA: Fuel oil stocks slump dragging inventories to record low

Oil product inventories at the UAE's Port of Fujairah declined 15% in the week ended Nov. 25 to the lowest in at least eight years after a slump in fuel oil stocks at the key bunkering port.

Inventories of heavy distillates plunged 31% to 6.27 million barrels, the lowest since December 2018, according to Fujairah Oil Industry Zone data published Nov. 27. Fuel oil stocks at the port have now dropped 38% since the end of 2023.

Traders at the port cited delays in getting barges refilled with high-sulfur fuel oil, causing premiums to soar. Fuel oil exports also climbed, ship-tracking data show.

Some companies providing HSFO to shippers via barge at the port experienced delays in receiving new supplies, which contributed to the drop in heavy distillates stockpiles, traders said.

The Platts-assessed Fujairah-delivered 380 CST bunker premium to the FO 380 CST 3.5% FOB Arab Gulf cargo rose 28% to $28.22/mt in the week ended Nov. 22. Platts is part of Commodity Insights. Traders said that barges have since been refilled.

Iraq, Russia, and Kuwait have continued to dominate the fuel imports into Fujairah during November, accounting for about 90% of the 304,000 b/d of fuel oil shipments to the port, according to tanker tracking data from S&P Commodities at Sea.

Middle, light distillates

Overall, total oil product stocks at Fujairah dropped to 14.23 million barrels, below the previous all-time low set in February 2022, according to FOIZ data compiled by S&P Global Commodity Insights since 2017. Stockpiles have now decreased 18% since the end of 2023 after dropping 16% last year.

Middle distillates such as jet fuel and diesel gained 12% to 2.14 million barrels, a one-month high, according to the FOIZ data. They have declined 15% so far in 2024. Light distillates, such as gasoline and naphtha, increased 2.2% to 5.82 million barrels, the highest in two weeks. They have expanded 24% so far this year.

Platts-assessed Fujairah-delivered 0.5% sulfur marine fuel premium to the benchmark FOB Singapore 0.5% sulfur cargo fell 11% during the week to $28.22/mt as of Nov. 22.

Refined product exports have risen, with fuel oil shipments from Fujairah averaging 207,000 b/d in the week started Nov. 22, up from 158,000 b/d a week earlier and the highest in three weeks, according to S&P Global Commodities at Sea(opens in a new tab).

Excluding fuel oil, refined product exports from Fujairah averaged 478,000 b/d in the week started Nov. 18, up from 351,000 b/d the previous week, marking the highest level since mid-August, CAS data showed. Diesel/gasoil exports dominated the non-fuel oil refined product exports in the latest week, while gasoline was the top export a week earlier.