FUJAIRAH DATA: Oil product stocks rebound on fuel oil refill

Oil product inventories at the UAE's Port of Fujairah climbed almost 23% in the week ended Dec. 2, rebounding from a record low a week earlier, led by a surge in heavy distillates, according to Fujairah Oil Industry Zone data published Dec. 4.

Total stockpiles rose to 17.487 million barrels, the highest since Sept. 16, according to FOIZ data compiled by S&P Global Commodity Insights since 2017. The rebound was led by a 37% advance in heavy distillates used as fuel oils for power generation and ship fuel after dropping 31% in the week prior.

The weekly gain left oil product inventories at the port little changed since the end of 2023 after dropping 16% last year.

Inventories of heavy distillates jumped to 8.564 million barrels, rebounding from the lowest since December 2018 as of Nov. 25, according to the data. They have dropped 16% since the end of 2023.

Middle distillates such as jet fuel and diesel gained 12%, reaching a seven-week high of 2.390 million barrels. They have declined 4.6% so far in 2024.

Light distillates such as gasoline and naphtha also increased 12% to 6.533 million barrels, the highest in eight weeks. They have expanded 39% so far this year.

Ship fuels

Demand for high sulfur fuel oil for shipping is "healthy," and earliest delivery dates have been extended to seven to 10 days from the usual three to five days, traders said. Demand for low sulfur fuel oil is "slow," and there is an oversupply, they added.

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 $7.19/mt in the week ended Nov. 29, up 12% from a week earlier, according to Commodity Insights data. On HSFO, the Fujairah-delivered 380 CST bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo assessment averaged $24.35/mt, down almost 17% over the same period.

Fuel oil exports from Fujairah averaged 256,000 b/d in November, down from 294,000 b/d in October, according to S&P Global Commodities at Sea(opens in a new tab) data.

Iraq has continued to send more fuel oil to the port, averaging 169,000 b/d so far in December compared with 139,000 b/d in November, CAS data showed. At the end of November, Iraq's Basrah refinery halted one of its four crude processing units due to high levels of fuel oil stocks, Commodity Insights reported Dec. 3, citing market sources.

Not counting fuel oil, refined product exports from Fujairah averaged 352,000 b/d in November, up from 295,000 b/d in October and the highest since August. Pakistan was the largest destination for the fourth consecutive month at 72,000 b/d in November, all of it gasoline, marking the highest since July 2021.