FUJAIRAH DATA: Oil product stocks drop for first time in three weeks

Oil products stockpiles at Fujairah in the UAE fell 5.3% in the week ended Nov. 17, with heavy distillates and light distillates both showing declines, according to Fujairah Oil Industry Zone data published Nov. 19.

The total dropped to 20.652 million barrels, the first drop in three weeks after reaching a six-month high a week earlier. Inventories are up 33% since the end of 2024.

Heavy distillates used for power generation and shipping retreated 7% to 10.239 million barrels, down from a seven-month high a week earlier and the first decline in three weeks. Light distillates, including gasoline and naphtha, slipped 7.2% to 7.225 million barrels, remaining below heavy distillates for the third consecutive week.

Middle distillates, such as jet fuel and diesel, rose 5.8% to 3.188 million barrels -- a two-week high.

Heavy distillates have gained 36% since the end of 2024, while light distillates have climbed 19% and middle distillates have risen 62%, according to the FOIZ data compiled by S&P Global Energy since 2017.

Despite lower fuel oil inventories, cargo availability in both the low and high sulfur fuel oil segments is expected to remain ample in the near term. Meanwhile, softer recent demand has increased competition among suppliers eager to fill their early-barging schedules, according to local traders, who noted pressure on thinning prompt delivered premiums.

Platts, part of S&P Global Energy, assessed the Fujairah-delivered LSFO marine fuel premium over the FOB Singapore marine fuel 0.5%S cargo values dropped to an average of $11.15/mt in October from $13.15/mt in September. However, the premium has since gradually decreased to $6.32/mt so far in November.

The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium to the fuel oil 180 CST FOB Arab Gulf cargoes rose to an average of $22.25/mt in October from merely 93 cents/mt in September but have since tumbled to minus $3.40/mt Nov. 3-18.