FUJAIRAH DATA: Oil product stocks fall to 2019 level as heavy distillates tumble

Dubai — Inventories of refined oil products at the UAE's Port of Fujairah dropped to the lowest since 2019 as heavy distillates tumbled after port bunker premiums over Singapore climbed to a 13-month high.

The total was 17.683 million barrels as March 22, down 8% from a week earlier and the lowest since Sept. 9, 2019, according to data from the Fujairah Oil Industry Zone released on March 24. Fuel oil and other heavy fuels used for marine bunkers and power generation which make up the heavy distillates stood at 7.115 million barrels as of March 22, the lowest since Dec. 31, 2018, the data showed.

An unexpected outage in the week of March 7 at Uniper Energy DMCC's refinery in Fujairah crimped marine bunker supplies, sending the premium for marine fuel 0.5%S bunker delivered at the port to a 13-month high on March 19. The premium for Fujairah-delivered marine fuel 0.5%S bunker over FOB Singapore marine fuel 0.5%S cargo surged to $50.47/mt on March 19, the highest since Feb. 11, 2020, S&P Global Platts data showed. As of March 15, the premium was $29.19/mt and by March 23 it was $26.91/mt.

A company spokesman declined to comment on March 23 when asked if Uniper Energy had indeed restarted its second crude processing unit after a company source had earlier told Platts it was expected to come back online in the week ended March 20.

Market participants said they are not clear on the status of the crude processing unit and traders said that volumes currently being loaded out by the company have yet to get back to normal though supplies are more available. More than a few traders said they are now in a position to offer IMO-compliant bunker for delivery even three days out.

Some 2.89 million barrels of fuel oil was headed for import into Fujairah in the week started March 8, the highest since Dec. 28, 2020, according to Kpler data. Origin countries included Russia, Saudi Arabia, Oman, and elsewhere in the Middle East Gulf.

Middle distillates stockpiles came to 3.655 million barrels as of March 22, a two-week high and up 6% from a week earlier. Middle distillates include jet fuel, gasoil, diesel and marine bunker gasoil.

Light distillates inventory was 6.913 million barrels as of March 22, a two-week low. The category includes gasoline and naphtha.

The Fujairah Oil Industry Zone has provided weekly oil product inventories exclusively to Platts since January 2017. All commercial terminal operators present in Fujairah participate in the weekly stock reporting, with now 13 terminals participating, according to the FOIZ website. Ecomar Energy Solutions, which operates one of three refineries at the port, has confirmed it's also now reporting.