Dubai — Stockpiles of oil products at the crude trading and bunkering hub of Fujairah on the east coast of the UAE jumped to a six-week high, with marine bunkers and fuel for power generation soaring the most in six months.
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The stockpiles stood at 26.681 million barrels as of Aug. 24, up 11% from a week earlier, according to data released Aug. 26 by the Fujairah Oil Industry Zone, or FOIZ. It was the biggest weekly gain since Feb. 24 and the highest total since July 13, according to FOIZ data provided exclusively to S&P Global Platts. Heavy distillates jumped 13%, the most since Feb. 24, at 15.486 million barrels.
Inventories had been falling since the record high of 30.71 million barrels on June 1. By in the week ended Aug. 22, they were at a four-month low amid signs of recovering economic activity as COVID-19 lockdowns were eased.
"Demand has been really, really bad, it's bad for all categories," a Fujairah-based source said. "It's been bad for gasoline, bad for gasoil and bad for bunkers. The easing of lockdowns hasn't led to a rebound of demand as expected. Stockpiles had been falling and now they're going back up."
Inventories of middle distillates, such as jet fuel and gasoil, surged 22% in the latest week while light distillates like gasoline and naphtha advanced 2%. It was the first time since June 1 that light, middle and heavy distillates all climbed. Stockpiles had fallen to a four-month low just a week earlier.
For all of August, stockpiles climbed 3.8% -- the first monthly advance since the 17% jump in May. Middle distillates were the only category that showed a decline for the month, down 5.8%, while light distillates expanded 4.3% and heavy distillates jumped 6.1%.