FUJAIRAH DATA: Oil product stocks fall, led by light distillates drop

Oil product stockpiles fell to a 12-week low as of Dec. 13, led by a slump in gasoline, naphtha and other light distillates, according to Fujairah Oil Industry Zone data provided exclusively to S&P Global Platts Dec. 15.

The total inventory was 15.312 million barrels as of Dec. 13, down 2.9% from a week earlier to the lowest since Sept. 20.

Light distillates led the way with a 4.4% drop to 4.205 million barrels, the lowest since Oct. 26, 2020.

Exports of the petrochemical feedstock naphtha from Fujairah in November picked up, with shipments destined for Taiwan at their highest since June 2019 and India set for its first naphtha import from Fujairah since February, according to Kpler shipping data.

Heavy distillates and residues including fuel for power generation and marine bunkers dropped 2.4% to 8.81 million barrels, a six-week low.

"More of the low sulfur fuel oil complex has been sold in the past week as suppliers hope to close out their trading positions to prepare for their year-end," a Fujairah bunker supplier said. Freight activity has begun to slow as holidays approach, traders said.

There are signs of shrinking supplies as well in Singapore, the world's largest bunkering hub. The Singapore 0.5%S marine fuel December-January backwardation has been widening since November and was $13/mt as of Dec. 14 due to reduced inflows in the Asian market, Singapore traders said.

For HSFO in Fujairah, bunker suppliers have been aggressive sellers to boost sales, local bunker suppliers said.

Middle distillates stood at 2.297 million barrels as of Dec. 13, down 2.2% from a week earlier to a four-week low. The category includes gasoil/diesel, jet fuel and kerosene.