FUJAIRAH DATA: Oil products stockpiles head for 2024 gain

Refined oil products inventories at the UAE's Port of Fujairah rose 4.7% in the week ended Dec. 23, heading for an annual gain with one week left, according to Fujairah Oil Industry Zone data published Dec. 25.

Total stockpiles increased to 18.649 million barrels, the second consecutive gain to a three-month high, according to FOIZ data compiled by S&P Global Commodity Insights since 2017. The increase was led by a 15% jump in heavy distillates, the third double-digit rise in the past four weeks. There was market talk that one of Fujairah's refineries devoted to produce ship fuel had been in maintenance, leaving room for imported supplies.

The weekly gain left stockpiles up 7.8% since the end of 2023 after dropping 16% last year.

Inventories of heavy distillates and residues used as fuel oil for power generation and shipping increased to a three-month high of 9.96 million barrels, according to the data. Stockpiles of heavy distillates have dropped 1.8% so far in 2024.

Middle distillates such as jet fuel and diesel dropped 9.1% in the latest week to 2.244 million barrels, a four-week low. They have dropped 10% this year.

Light distillates, such as gasoline and naphtha, fell 3.6% to 6.445 million barrels, the lowest in four weeks. They have expanded 38% since the end of 2023.

The next report on Jan. 1 for the week ended Dec. 30 will be the last weekly count for 2024.

Iraq gasoline

Refined oil product exports from Fujairah have averaged 450,000 b/d so far in December, the lowest since February, according to Kpler data. Some 22,200 b/d of gasoline was headed to Iraq in the month, the most since June, while 79,500 b/d of gasoline and 4,880 b/d of blending components were on their way to Pakistan, the biggest buyer of refined products from Fujairah for December.

Demand for low sulfur fuel oil for shipping is considered "decent" and supplies are enough to meet immediate refueling needs, bunker suppliers said.

More supplies are headed to Fujairah. A cargo of around 800,000 barrels of very low sulfur fuel oil from Kuwait's Al Zour refinery was headed for Fujairah with an estimated arrival of Dec. 26, according to Kpler data. The last scheduled export of LSFO or VLSFO from the port was about 735,000 barrels to South Korea's Yeosu refinery for early December arrival.

There was "some decent demand late last week and early this week" while supplies are readily available, one ship fuel supplier said. "We can safely say that suppliers have enough cargo and barge slots."

The Platts-assessed Fujairah-delivered marine fuel 0.5% sulfur bunker premium over benchmark FOB Singapore marine fuel 0.5%S cargo averaged $8.32/mt Dec. 16-24, down from $8.83/mt in the first half of the month, according to Commodity Insights data.

As for high sulfur fuel oil, supplies are considered sufficient, if not in surplus, traders said.

The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf averaged $21.95/mt Dec. 1-24, down from $26.42/mt in November, Commodity Insights data showed.