FUJAIRAH DATA: Oil product stocks rebound to eight-week high

Inventories of oil products at the UAE’s Port of Fujairah rebounded to an eight-week high as of Sept. 9, with double-digit gains in both heavy distillates used as ship fuel and for power generation and middle distillates including jet fuel and diesel, according to the Fujairah Oil Industry Zone.

Total stocks at the port rose 11% in the week to Sept. 9 to 18.742 million barrels, the highest since July 15, FOIZ data published Sept. 11 showed. Since mid-July, stockpiles have climbed in only two of the past nine weeks after reaching a 10-month low of 16.458 million barrels on Aug. 12. Stockpiles are now 8.1% higher than the end of 2023.

Stockpiles of heavy distillates and residues jumped 25% to 10.027 million barrels, the highest in almost three months, while middle distillates jumped 34% to 3.146 million barrels, an eight-week high. Light distillates, including gasoline and naphtha, at Fujairah declined 14% to 5.569 million barrels, a two-month low.

So far since the end of 2023, stocks of light distillates have climbed 19%, heavy distillates have dropped 1.1% and middle distillates have increased 25%.

Rough seas

Windy conditions and rough seas off the coast of Fujairah this month have caused backlogs of ships waiting to reload fuel, delaying some demand, traders said. High sulfur fuel oil supplies, however, were disrupted when one cargo did not meet specifications, making it unusable.

As a result, the Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf has more than doubled this month, to $53.31 per metric ton through Sept. 10, compared with $24.31/t in August, S&P Global Commodity Insights data showed.

On the other hand, low sulfur fuel oil prices have declined.

The Platts-assessed Fujairah-delivered marine fuel 0.5% sulfur bunker premium over benchmark FOB Singapore marine fuel 0.5%S cargo averaged $16.40/mt this month through Sept. 10, down from $17.74/mt in August, Commodity Insights data showed.

“Loading congestions have not really recovered,” a Fujairah-based bunker supplier said, adding that one terminal that has several storage tanks was unable to discharge because of rough seas in the most recent week. Another bunker supplier pointed to “loading delays for a few” buyers.

Refined oil product exports from Fujairah slipped to 3.89 million barrels in the week started Sept. 2, dominated by fuel oils, from 4.3 million barrels in the prior week, according to Kpler.

A shipment of some 197,000 barrels of gasoline was headed for Saudi Arabia in the week started Sept. 9, its first gasoline imports from Fujairah since July 29, while 519,000 barrels of naphtha headed for Japan, the most since June 2023.