FUJAIRAH DATA: Oil product stocks jump to 11-month high

Oil product inventories at the UAE's Port of Fujairah climbed 14% in the week ended March 17, led by a 17% gain in gasoline, naphtha and other light distillates, according to Fujairah Oil Industry Zone data published March 19.

The total rose to 21.673 million barrels, the highest since April, with light distillates increasing to 8.063 million barrels, the most in three weeks.

Inventories of heavy distillates used as fuel for power generation and shipping climbed 13% to 11.039 million barrels, a 14-month high. Middle distillates, such as jet fuel and diesel, rose 9.1% to 2.571 million barrels, the highest in five months.

In shipping, low-sulfur fuel oil prices in Fujairah were about $509/mt, nearly the same as Singapore at $511/mt. "Most shipowners will lift in Singapore instead," a Fujairah-based bunker supplier told Platts. "LSFO demand has been very bad," the supplier added.

Fujairah's ship fuel sales dropped to a record low in February.

According to Kpler data, supplies received a boost from the Antigua 1 Suezmax cargo of about 720,000 barrels of VLSFO from Kuwait's Al-Zour refinery to Vopak Fujairah on March 12. Traders expressed skepticism about a market rebound in April.

The Platts-assessed Fujairah-delivered LSFO marine fuel premium over the FOB Singapore cargo values averaged $10.43/mt from March 3-18, up from $7.11/mt in February.

Traders said high-sulfur fuel oil demand is stronger, but supplies are considered ample. They said deliveries by barge can be arranged within two to six days.

The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium to the 380 CST 3.5%S FOB Arab Gulf fuel oil cargoes averaged $22.95/mt so far in March, slightly above the $21.09/mt across February. Platts is part of S&P Global Commodity Insights.

Exports upswing

Refined product exports from Fujairah, excluding fuel oil, averaged 462,000 b/d in February, up from 312,000 b/d in January and the highest since December 2022, according to S&P Global Commodities at Sea ship-tracking data. Approximately 116,000 b/d of gasoline was shipped to Pakistan lin February, up from 75,000 b/d in January.

Fuel oil exports in February averaged 350,000 b/d, the most since September, with China as the top destination at a record high of 80,000 b/d, according to the CAS data. Approximately 1.018 million b/d of refining capacity is scheduled to be offline in China in the second half of March in the state-run sector, with Sinopec taking the lead with a combined 818,000 b/d in refining capacity at five refineries. Another 340,000 b/d in April will be under maintenance at two more refineries -- one from Sinopec and one from PetroChina.