03 Nov 2021 | 06:37 UTC

Fujairah oil product stocks fall slightly amid middle distillates recovery

Highlights

Stocks stand at 15.584 million barrels Nov. 1, down 0.8% on week

Middle distillates stocks rise 11.8%, reversing last week's 16.8% plunge

Fujairah's heavy distillate stocks decline 4.2% to 7.386 million barrels

Oil product stockpiles at the Port of Fujairah on the UAE's east coast fell slightly in the week to Nov. 1 as middle distillate stocks recovered from last week's 16.8% plunge.

The total inventory stood at 15.584 million barrels Nov. 1, edging down 0.8% from a week earlier, according to Fujairah Oil Industry Zone data provided exclusively to S&P Global Platts Nov 3. Middle distillates stocks rose 11.8% over the same period to 3.28 million barrels after falling 16.8% to 2.93 million barrels the week before.

Fujairah's heavy distillate stocks declined 4.2% on the week to 7.386 million barrels.

Ship fuel sales at the Port of Fujairah, the world's third-largest bunkering hub, probably set a new high for 2021 in October as buyers that had waited for crude oil prices to fall were forced to meet their requirements, sending premiums to a seven-month high, traders told S&P Global Platts.

The premium for Fujairah-delivered marine fuel 0.5%S over the FOB Singapore Marine Fuel 0.5%S cargo assessment averaged $10.63/mt in October, well above September's average of $2.10/mt, according to Platts data.

Marine fuel premium

Bunker demand at the port was holding up to date in November, with bunker fixtures for the first half at "very healthy levels,'" a trader said. "There is still much uncertainty for second half of the month," a Fujairah bunker supplier said.

The premium for Fujairah-delivered marine fuel 0.5%S over the FOB Singapore Marine Fuel 0.5%S cargo assessment had surged to $22.72/mt Oct. 27, the highest since March 24, Platts data showed. The premium stood at $20.63/mt Nov. 1, the data also showed.

Fujairah's light distillate stocks fell 3% week on week to 4.918 million barrels Nov. 1.

The premium for 95 RON gasoline cargoes delivered in the Middle East hit a 6-year high amid production disruptions in Kuwait and India and strong buying from India, traders said.

Platts assessed the Gasoline 95 RON Unl CFR Arab Gulf premium at $6.45/b over Mean of Platts Arab Gulf 95 RON gasoline Oct. 27, the highest since being assessed at $6.51 on Aug. 3, 2015. The premium was assessed at $6.50/b over Mean of Platts Arab Gulf 95 RON gasoline on Nov. 1