FUJAIRAH DATA: Oil product stocks climb to 3-month high led by 35% gain in middle distillates

Oil product stockpiles at the UAE's Port of Fujairah climbed to a three-month high as of May 23 with buildups across the board, according to Fujairah Oil Industry Zone data published May 25.

The total inventory was 19.801 million barrels as of May 23, up 11.6% from a week earlier, the port data provided exclusively to S&P Global Commodity Insights showed. It was the biggest weekly gain since Feb. 21 to the highest level since Feb. 7. Inventories are still 15.54% below levels of a year earlier.

Stocks of heavy distillates and residues used as fuels for power generation and marine bunkers stood at 10.902 million barrels as of May 23, up 5.4% from a week earlier and the first increase in three weeks. Heavy distillates are needed at this time of year as Saudi Arabia looks to use fuel oils to burn for power generation as demand for air conditioning ramps up in summer. Shipments of fuel oil to Saudi Arabia for May are headed for the biggest month since September 2020, with Saudi Electricity Co. the largest buyer, destined for the Jeddah South power plant, according to Kpler data. Heavy distillates stocks have declined 19.75% since this time last year.

Light distillates inventories stood at 6.601 million barrels as of May 23, up 15.9% from a week earlier and the fourth weekly gain to the highest since Feb. 28. Tanzania was the only destination for gasoline exports from Fujairah for the weeks started May 9 and May 16, with total shipments in the week started May 16 the lowest since September 2021, according to Kpler data. South Korea was the only buyer of naphtha in the week started May 16, the data showed. Inventories of light distillates are up 7.8% in the past year.

Middle distillates climbed 35% over the week ended May 23 to 2.298 million barrels, a 12-week high, the port data showed. Saudi Aramco's Jazan refinery has begun exports of oil products, sources told S&P Global. The middle distillates stockpiles which include jet fuel and gasoil are down 38.52% in the past year.