FUJAIRAH DATA: Oil product stocks drop for second week after big naphtha export

Oil product inventories at the UAE's Port of Fujairah fell for the second consecutive week after a large cargo of naphtha was booked for Japan, latest data showed March 30.

Total oil products stock fell 1.7% week on week to17.893 million barrels March 28, after falling 1.8% in the week to March 21, the Fujairah Oil Industry Zone data showed. The total was up 1.2% year on year, solely due to an increase in heavy distillates stocks.

Light distillates stocks, comprising gasoline and its blending components, naphtha and condensates, fell 5.8% on the week to 5.919 million barrels March 28, a three-week low, and were down 14.4% year on year, the FOIZ data showed. A 730,000-barrels of naphtha was destined for Japan from Fujairah in the week, which would be a record high, according to Kpler data.

Middle distillates stocks, comprising gasoil, diesel, marine bunker gasoil, jet fuel and kerosene, stood at 1.787 million barrels March 28, edging down 0.1% from a week earlier and down 51.1% year on year.

Heavy distillates stocks stood at 10.187 million barrels March 28, up 0.6% from a week earlier and up 43.18% year on year. The category includes marine bunkers and fuel used for power generation.

Although the port of Fujairah remains well supplied with HSFO, some bunker deliveries have been delayed in recent days after an HSFO barge was temporarily taken offline for technical issues, leaving few suppliers to choose from, local sources said. LSFO bunker demand has also been capped by surging crude oil prices, market sources said.

"Barging schedules are already extremely congested and could not take on more fixtures apart from fulfilling the existing ones," a Fujairah-based bunker supplier said about the current backlog of HSFO bunker sales.

The premiums of Fujairah-delivered 380 CST HSFO to the FOB Arab Gulf 180 CST HSFO cargo assessments averaged $26.69/mt over March 21-25, up from $23.40/mt a week earlier, S&P Global Commodity Insights data showed. The premium averaged $22.88/mt March 28-29.

Traders in Fujairah said HSFO inventories in the UAE remained plentiful amid sufficient regional supply, in contrast to the world's largest bunker hub of Singapore, which has seen stocks tighten amid quality issues.

Local importers in Fujairah have been avoiding LSFO blending components from Russia and bunker supplies from Russian-flagged vessels, market participants said. Refineries at Fujairah have also been looking for alternative supplies, traders said.

The premium of Fujairah-delivered marine fuel 0.5%S over the benchmark FOB Singapore marine fuel 0.5%S was assessed at $47.76/mt March 29, up $6.66/mt on the day, S&P Global data showed.