FUJAIRAH DATA: Oil product stocks hold near three-month low as exports climb

Stockpiles of oil products at the UAE's Port of Fujairah were little changed near a three-month low as of June 24, as exports from the world's third-biggest bunkering hub headed for a second consecutive monthly gain, according to Fujairah Oil Industry Zone and ship-tracking data.

Total inventories at the port increased 1% to 17.812 million barrels over the week to June 24, rebounding from a three-month low a week earlier, the FOIZ data published June 26 showed. That put stockpiles up 2.7% since the end of 2023.

Stocks of light distillates such as gasoline and naphtha at the port rose 2.8% over the week to 5.961 million barrels, rebounding from the lowest since Dec. 25, 2023, reached a week earlier. At the same time, inventories of heavy distillates used in power generation and ship fuel increased 5.6% to 9.271 million barrels, the first jump in three weeks. The gains were enough to offset continued withdrawals in middle distillates.

Those stocks such as diesel and jet fuel slipped another 16% to 2.580 million barrels, the lowest since March 25 and the third consecutive weekly decline.

Exports of all three product categories from Fujairah are averaging 640,000 b/d in June, the highest since March and up from 596,000 b/d in May, according to Kpler shipping data. China, Singapore and Tanzania are the top destinations so far this month. Shipments of diesel/gasoil and fuel oils are heading for records this month, the data showed.

The Platts-assessed Fujairah-delivered marine fuel 0.5% sulfur bunker premium over benchmark FOB Singapore marine fuel 0.5%S cargo averaged $10.60/mt this month through June 25, little changed from $10.23/mt in May, according to S&P Global Commodity Insights data.

The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo averaged $31.18/mt this month through June 25, down from $38.59/mt in May, the data showed.

"It seems there's quite healthy [LSFO] demand this week," a Fujairah-based trader said, adding that even with reduced flows from Kuwait because of domestic summer power generation requirements, there is adequate supply.

"For the past two days, the flow of inquiries has been good," another trader said. "HSFO demand has also been good" this week.

So far since the end of 2023, stocks of light distillates have climbed 27%, heavy distillates have dropped 8.6% and middle distillates have risen 3%.