FUJAIRAH DATA: Oil product stocks retreat even as heavy fuels extend gains

Oil product stockpiles at the UAE's Port of Fujairah have fallen to a two-week low even as fuels for power generation and marine bunkers extended gains ahead of the Middle East's high demand period for electricity to run air conditioners with summer around the corner.

The total inventory was 17.059 million barrels as of April 18, down 0.3% from a week earlier and the lowest since April 4, according to Fujairah Oil Industry Zone data published on April 20. Light distillates including gasoline and naphtha shrank 20% over the same period to 3.944 million barrels, also a two-week low. Light distillates had jumped 45% in the prior week ended April 11, following a record 42% weekly plunge to a record low of 3.41 million barrels set on April 4.

Stocks of middle distillates, including jet fuel and diesel, also dropped over the most recent week, by 1.2% to 1.166 million barrels as of April 18, the lowest since the record low of 1.103 million barrels set on March 7.

Heavy distillates bucked the trend, with stocks hitting 11.949 million barrels as of April 18, up 8.6% from a week earlier and the highest since June 21, according to the FOIZ data.

Saudi Arabia has been reducing its reliance on crude oil for power generation by increasing the use of other energy sources, such as natural gas and fuel oil, according to the US Energy Information Administration.

In March, Fujairah's fuel oil exports to Saudi Arabia reached 35,900 b/d, the highest since September 2020, according to Kpler data. During the summer months, the kingdom's electricity consumption increases as domestic demand for air conditioning rises. The UAE, on the other hand, mostly relies on natural gas for power generation.

Total inventories as of April 18 were 10.6% lower than a year earlier, with light distillates down 34% and middle distillates off by 62% over the same period. Heavy distillates were almost 20% higher.