FUJAIRAH DATA: Oil products inventories resume gains

Oil products inventories at the UAE’s Port of Fujairah rose 1.5% in the week ended Oct. 28, the fourth increase in five weeks, according to Fujairah Oil Industry Zone data published Oct. 30.

The total rose to 17.057 million barrels, the highest since Sept. 16, according to the FOIZ data compiled by S&P Global Commodity Insights. Inventories have now decreased 1.6% since the end of 2023 with only light distillates up for the year.

Stocks of middle distillates such as jet fuel and diesel slumped 16% in the latest week to 1.881 million barrels, a five-week low, according to the data.

Light distillates such as gasoline and naphtha rose 5.9% to 6.353 million barrels, a three-week high, while heavy distillates used for power generation and as ship fuel increased 3% to 8.823 million barrels, the third gain in a row.

For October, product exports from Fujairah slowed to 534,000 b/d on average from 661,000 b/d in September, with shipments down for South Korea, China and Pakistan, according to Kpler data. At the same time, some 60,300 b/d of gasoline and fuel oils headed to Saudi Arabia, up from 27,600 b/d in September. Another 17,500 b/d of gasoline was destined for Iraq in October, the first such shipment since July, the data showed.

Iraq’s Kerbala refinery was shut on Sept. 15 due to leaks in the main crude distillation unit's heat exchangers, sources close to owner Central Refineries previously told Commodity Insights. Production is now being restored, reaching 70% of nominal capacity as of Oct. 23.

Bunker demand

Bunker demand for low sulfur fuel oil for shipping is considered steady while high sulfur fuel oil buying is “robust”, traders said, with prices for both grades down for the week. LSFO suppliers want to sell inventory as soon as possible before the end of the month while HSFO suppliers can only fill deliveries after one week, they said.

For LSFO, Platts assessed the Fujairah-delivered marine fuel 0.5% sulfur bunker premium over the benchmark FOB Singapore marine fuel 0.5% sulfur cargo at an average of $10.36/mt through the week ended Oct. 25, down 16% on the week, Commodity Insights data showed.

For HSFO, the Fujairah-delivered 380 CST bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo assessment declined 7.6% over the same period to an average of $29.80/mt, the third consecutive weekly drop, Platts data showed.

Light distillates inventories have increased 35% since the end of 2023 while middle distillates dropped 13% and heavy distillates fell 25%, according to the FOIZ data.

Platts is part of Commodity Insights.