FUJAIRAH DATA: Oil products stocks climb for fourth straight week

Oil products inventories at the UAE's Port of Fujairah climbed for a fourth consecutive week, led by a 33% rise in jet fuel, diesel and other middle distillates, as overall exports slowed for June, according to July 2 port figures and the latest ship-tracking data.

The total rose 0.2% to 19.156 million barrels in the week ended June 30, marking the longest stretch of gains since February 2022, according to Fujairah Oil Industry Zone data shared with Platts since 2017. Platts is part of S&P Global Commodity Insights.

Middle distillates, including jet fuel and diesel, rose to 2.722 million barrels, the highest since March 31. Light distillates such as gasoline and naphtha increased 11% to 7.487 million barrels, the highest in two weeks.

Heavy distillates used as fuel oils for shipping and power generation dropped 13% to a two-week low of 8.947 million barrels.

Refined product exports from Fujairah averaged 654,000 b/d in June, down from 742,000 b/d in May to a two-month low, according to S&P Global Commodities at Sea data. Fuel oil shipments were little changed at 334,000 b/d compared with 356,000 b/d in May.

Total stocks were up 23% since the end of 2024, with middle distillates up the most at 38%, followed by light distillates, which rose 23%, and heavy distillates, which increased 19%.

Bunker demand moderate to choppy

Downstream bunker demand for both low and high sulfur fuel oil was moderate at best, though mostly choppy amid high volatility in international crude oil prices over the past week, driven by recent escalation in Middle Eastern geopolitical tensions, traders said.

Persistent competition in the downstream HSFO market continued to pressure valuations and cap significant gains, as suppliers undercut competitors and offered additional discounts around the nearby hub of Khor Fakkan.

As suppliers aggressively offer to fill available prompt barging slots and move cargoes, inflows reportedly coming from Middle Eastern neighbors and Russian barrels could continue to keep stocks ample.

Amid the peak summer season, Saudi Arabia reportedly increased its HSFO imports from the Fujairah hub in June compared with May, with a significant portion of these cargoes allocated for domestic power generation, industry sources said.

The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium over FO 380 CST 3.5% FOB Arab Gulf averaged $3.72/mt in June, down nearly fourfold from May's average of $14.35/mt.

The HSFO bunker premium reached a near seven-week high of $13.79/mt on July 1, up 93 cents/mt day over day.

Meanwhile, inconsistent demand flows have slowed the stream of inquiries despite adequate inventories and prompt barging schedules, likely weighing on delivered LSFO premiums in the near term.

The Platts-assessed Fujairah-delivered 0.5% sulfur marine fuel bunker premium over benchmark FOB Singapore 0.5%S marine fuel cargo averaged $4.59/mt in June, compared with $6.42/mt in May.

Fujairah's LSFO bunker premium was last assessed at $3.99/mt on July 1, up 49 cents/mt day over day.