FUJAIRAH DATA: Oil product stockpiles rise on light distillates

Oil product storage at the UAE’s Port of Fujairah rose 6.8% in the week ended Oct. 7, marking the second consecutive weekly increase after hitting a two-and-a-half-year low, according to Fujairah Oil Industry Zone data published Oct. 9.

The total reached 16.02 million barrels, up 12% from 14.365 million barrels on Sept. 23, the lowest since Feb. 14, 2022, according to FOIZ data compiled by S&P Global Commodity Insights. Stockpiles have shrunk 7.6% since the end of 2023.

Inventories of light distillates, such as gasoline and naphtha, expanded 29% in the latest week to 6.687 million barrels, a seven-week high. Middle distillates, like jet fuel and diesel, dropped 7.4% to 2.142 million barrels, a two-week low after surging 54% a week earlier.

Heavy distillates and residues used as ship fuel and for power generation fell 4.1% to 7.191 million barrels, the lowest since Oct. 11, 2021, marking the fourth consecutive weekly drop. About 196,000 barrels of fuel oils headed for Saudi Arabia in the week starting Sept. 30, the most since late May, while the US was set to receive 219,000 barrels, the first such shipment since mid-July, according to Kpler data.

Marine fuel prices in Fujairah have climbed recently, with high sulfur fuel oil supply shortages reported in Europe and the Americas.

Platts, part of Commodity Insights, assessed high sulfur fuel oil delivered in Fujairah at $465 per metric ton as of Oct. 4, up from $422/t a week earlier, while low-sulfur fuel oil rose to $592/t from $557/t over the same period.

Since the end of 2023, stocks of light distillates have climbed 43%, heavy distillates have dropped 29% and middle distillates have declined 14%.