FUJAIRAH DATA: Oil product stocks reverse three-week decline

Stockpiles of oil products at the UAE's Port of Fujairah rose 1.4% in the week ended Oct. 30, ending a three-week fall as a rise in residues offset declines higher up the barrel, according to data from the Fujairah Oil Industry Zone.

Total inventories stood at 17 million barrels as of Oct. 30, up from 16.8 million barrels the previous week and compared to 22 million barrels Oct. 31, 2022.

Stocks of residues, like heavy distillates used for fuel oil power generation and shipping, rose 24.6% on the week to 11 million barrels but not as high as two weeks previously.

Middle distillates, such as jet fuel and diesel, fell 16.3% on the week to 1.8 million barrels, compared with 2.7 million barrels Oct. 31, 2022. Light distillates fell 27.3% to 4.2 million barrels, the lowest since the end of September.

Oil product exports excluding fuel oil from Fujairah averaged 635,600 b/d in the week starting Oct. 23, up considerably from 285,700 b/d the previous week and the highest in three weeks, according to S&P Global Commodities at Sea data. Fuel oil exports averaged 256,500 b/d, a slight downtick from 259,400 b/d the previous week, which was the highest in a month.

Bunker selling activity

Supply of 0.5% sulfur fuel oil at Fujairah has been tight, both for cargo supply as well as terminal loadings, according to market sources.

The recent lack of 0.5%S fuel oil spot supply from Kuwait's 615,000 b/d Al-Zour refinery has tightened product availability in Fujairah, although bunker traders also reported limited demand.

Exports of 0.5%S fuel oil from Al-Zour plummeted in October as rising power demand and refinery maintenance limited barrels leaving the region, fuel oil traders said.

The drop in export volumes has put pressure on Asian 0.5%S fuel oil markets, and coincides with the projected timeline for the 615,000 b/d refinery to reach its full capacity, according to its owner Kuwait Petroleum Corporation.

According to S&P Global Commodities at Sea data, fuel exports from Al-Zour dived from 3.4 million barrels in September to just 600,000 barrels in October, down from an average of 2.9 million barrels in Q3.

In sharp contrast to an active export program over the summer, AL-Zour has issued no 0.5%S fuel oil tenders since September, when a 120,000-130,000 mt cargo was awarded to ExxonMobil Singapore, according to trading sources.