FUJAIRAH DATA: Oil products stockpiles inch higher from 2 1/2-year low

Stockpiles of oil products at the UAE’s Port of Fujairah rose 2.5% in the week ended Sept. 30 after plummeting to a 2 1/2-year low a week earlier, according to Fujairah Oil Industry Zone data published Oct. 2.

The total increased to 15.001 million barrels from 14.635 million barrels a week earlier, the lowest since Feb. 14, 2022, according to the FOIZ data compiled by S&P Global Commodity Insights. Stockpiles have now shrunk 13% since the end of 2023.

Gains were led by middle distillates such as jet fuel and diesel, jumping 54% in the latest week to 2.313 million barrels after dropping 51% the week earlier, according to the data. Stockpiles of light distillates such as gasoline and naphtha increased 11% to 5.188 million barrels, a two-week high.

Heavy distillates and residues used as ship fuel and for power generation dropped 11% to 7.5 million barrels, the lowest since Nov. 1, 2021.

Ship fuel traders said buyers of both low sulfur and high sulfur fuel oils took advantage of lower prices, with “a lot” of fixtures reported and delivery slots filling up quickly. Fujairah is the world's third-largest bunkering port after Singapore and Rotterdam.

Platts, part of Commodity Insights, assessed high sulfur fuel oil delivered Fujairah at $429 per metric ton as of Aug. 30, down from $460/t a week earlier while low-sulfur fuel oil delivered Fujairah dropped to $564/t from $587/t over the same period.

So far since the end of 2023, stocks of light distillates have climbed 11%, heavy distillates have dropped 26% and middle distillates have climbed 7.7%.