FUJAIRAH DATA: Oil products stockpiles drop nearly 12% to three-week low

Oil products inventories at the UAE's Port of Fujairah dropped almost 12% in the week to April 14, the lowest in three weeks, with all but middle distillates showing shrinkage, according to Fujairah Oil Industry Zone data published April 16.

The total fell to 22.110 million barrels from a 28-month high a week earlier. Heavy distillates, used as fuel for power generation and shipping, declined 17% to 11.002 million barrels, the first drop in three weeks from the highest since May 15, 2023, a week earlier.

Light distillates, including gasoline and naphtha, fell 7.6% to 8.461 million barrels from a 69-month high a week earlier. Middle distillates, such as jet fuel and diesel, increased 3.4% to 2.647 million barrels, a two-week high.

The drop in heavy distillates may be temporary, as fuel oil imports from Russia to Fujairah jumped to more than 1 million barrels in the week started April 14, the highest since February, according to Kpler data. Total product exports are averaging 566,000 b/d this month, down from 587,000 b/d in March.

In shipping, demand for high sulfur fuel oil has been strong, while low-sulfur fuel oil was "lukewarm at best," traders said. HSFO buyers are contacting sellers more frequently than in March and suppliers are eager to sell, likely capping any significant price increases, they said. Some suppliers have committed their deliveries through late April, with the vast majority needing four to eight days to refuel.

The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium to the 380 CST 3.5%S FOB Arab Gulf fuel oil cargoes rose to an average of $31.62/mt so far in April, from $21.97/mt in March. Platts is part of S&P Global Commodity Insights.

LSFO stockpiles are likely more than sufficient for the rest of April, thereby pressuring both the delivered and ex-wharf premiums, traders said.

The Platts-assessed Fujairah-delivered LSFO marine fuel premium over the FOB Singapore cargo values averaged higher at $9.67/mt over April 1-15, marginally improving from $9.34/mt in March.