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

Stockpiles of oil products at the UAE's Port of Fujairah dropped to a two-month low on May 13, led by declines in light and middle distillates, according to data from the Fujairah Oil Industry Zone.

Total inventories fell 3.6% to 19.541 million barrels in the week ended May 13, the lowest since March 11, the FOIZ data published May 15 showed. However, stockpiles have increased 13% since the end of 2023.

Stockpiles of middle distillates such as diesel and jet fuel dipped 1.1% to 3.204 million barrels, a seven-week low, while light distillates retreated 15% to 6.374 million barrels, the lowest since Feb. 19. Stocks of heavy distillates used for power generation and ship fuel climbed 4.8% to 9.963 million barrels, a three-week high.

While refined product exports from Fujairah declined for the latest week, the four-week moving average remains above 5 million b/d for a second consecutive week, according to Kpler data. Shipments dropped to 4.38 million barrels in the week started May 6, down from 9.87 million barrels in the previous week, the most since at least 2016, the data showed. Refined product exports to China were at a record high of 1.2 million barrels in the latest week, with all of it being fuel oils.

Demand for low-sulfur fuel oil for shipping slowed in the past week, leading to the increase in heavy distillates stocks, traders said.

The slowdown resulted in more competitive offers from sellers, bunker suppliers said. "Bunker demand last week was very slow and sales were lower on average last week too... Feels that LSFO demand in April was better than May," a Fujairah-based bunker supplier said.

Since May, more suppliers were able to offer up barging slots for early refueling dates in one to four days ahead, whereas prompt schedules in April were generally tighter in comparison, traders said.

The Platts Fujairah-delivered marine fuel 0.5% sulfur bunker premium over benchmark FOB Singapore marine fuel 0.5%S cargo values averaged $11.42/mt May 2-14, down from $15.51/mt for April.

In the HSFO segment, steady demand supported Fujairah's delivered premiums with some suppliers' barging schedules committed toward the last week of May, though more slots for prompt refueling dates were made available during the week started May 13, bunker suppliers said.

The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo averaged $41.05/mt for May 2-14, above the $34.95/mt in April, according to data by S&P Global Commodity Insights.

Since the end of 2023, stocks of light distillates have climbed 36%, heavy distillates have dropped 1.8% and middle distillates have risen 28%, according to the FOIZ data compiled by Commodity Insights since 2017.

Platts is part of Commodity Insights.