FUJAIRAH DATA: Oil product stocks drop from six-month high as residues plunge

Oil product stockpiles at the UAE's Port of Fujairah dropped from a six-month high on June 13, led by a 22% plunge in heavy distillates and residue levels from the week before, Fujairah Oil Industry Zone data published June 15 showed.

Total inventory was down 11% from a week earlier at 17.949 million barrels on June 13, the port data provided exclusively to S&P Global Commodity Insights showed. Inventories were 24% lower than at the same time last year.

Oil product stocks had risen the week before to six-month high, led by gains in light distillates, as Fujairah bunker prices hit record high on June 6-7.

Stocks of heavy distillates and residues used as fuels for power generation and marine bunkers stood at 8.101 million barrels on June 13, down 22% from a week earlier and the lowest since mid-February. Heavy distillate stocks were also 35% lower than a year earlier.

29-month high premium

The Fujairah-delivered marine fuel 0.5% bunker premium to benchmark Singapore marine fuel 0.5% cargo surged to a near 29-month high of $70.76/mt June 14 on tight supply.

The differential was last higher Jan. 21, 2020, at $75.54/mt, S&P Global data showed.

The Fujairah-delivered marine fuel 0.5% bunker premium has averaged $52.92/mt to date in June, 28% higher than the $41.33/mt averaged in May, S&P Global data showed.

Light distillate inventories stood at 7.101 million barrels on June 13, down 4.2% from a week earlier. Inventories of light distillates were almost unchanged from a year earlier.

Middle distillate inventories rose 13.9% over the week ended June 13 to 2.747 million barrels, the highest level since Nov. 22, the port data showed. The stockpiles, which include jet fuel and gasoil, were down 31% year on year.