Fujairah data: Oil product stocks climb to 4-week high on heavy distillates

Oil product stockpiles at the Middle Eastern hub of Fujairah climbed 4.4% in the past week to a four-week high, led by gains in heavy distillates and residues, according to data released Wednesday by the Fujairah Oil Industry Zone.

Total stocks on January 20 stood at 21.301 million barrels, the most since December 23. Heavy distillates and residues, which includes fuel oils used for marine bunkers and power generation, climbed 15% to 11.794 million barrels, the highest since December 9, data compiled by S&P Global Platts showed.

International Maritime Organization rules effective January 1 imposed a 0.5% sulfur limit in marine fuels. Heavy distillates include both high sulfur fuel oil (HSFO) and low sulfur fuel oil (LSFO). Middle distillates, which include marine gasoil, tumbled 26% in the past week, the biggest decline in 13 months.

"Due to IMO regulation in bunker specs, there is less demand now for heavy fuel oil and more demand for middle distillates to be used either as a blending component to make LSFO or to use it directly as marine gasoil," a source said. Middle distillates also include gasoil, diesel, jet fuel and kerosene.

Fujairah has 12 bunker suppliers able to provide HSFO (at least 3.5% sulfur), 11 offering very low sulfur fuel oil (less than 0.5%), eight supplying marine gasoil (less than 0.5% sulfur) and seven trading low sulfur marine gasoil (less than 0.1% sulfur), according to a Port of Fujairah notice.

Meanwhile, light distillates including gasoline rose 9% to 6.348 million barrels, a three-month high.

Platts is the official publisher of the oil products data. Fujairah has the Middle East's largest commercial storage capacity for refined products.