FUJAIRAH DATA: Oil products stocks rise to two-week high

Oil products inventories at the UAE's Port of Fujairah climbed 2% in the week ended Nov. 11, with only middle distillates falling, according to Fujairah Oil Industry Zone data published Nov. 13.

Total inventories rose to 16.465 million barrels, a two-week high, as reported by FOIZ data compiled by S&P Global Commodity Insights. Stockpiles have decreased 5% since the end of 2023, following a 16% drop for all of last year.

In the most recent week, inventories of heavy distillates used for power generation and as ship fuel climbed 4.5% to 8.697 million barrels, the highest in two weeks, while light distillates such as gasoline and naphtha rose 1.3% to 6.001 million barrels, also a two-week high. Middle distillates such as jet fuel and diesel fell 6.5% to 1.767 million barrels, a seven-week low.

So far this year, light distillates inventories have increased by 28%, while middle distillates dropped 29% and heavy distillates fell 14%, according to the FOIZ data.

Fuel oil exports from Fujairah for the week started Nov. 4 dropped to 60,000 b/d, all of it headed to China, from 122,000 b/d in the previous week, according to S&P Global Commodities at Sea data. Russia was the sole source of fuel oil imports for the second consecutive week, at 82,000 b/d, the data showed. Gasoline shipments to Pakistan reached 79,000 b/d in the week starting Nov. 4, with November totals already exceeding October's 46,000 b/d, the data showed. Pakistan State Oil has issued at least three tenders for gasoline this month to be delivered in December.

Regarding ship fuel demand, Fujairah, the world's third-largest bunkering hub, saw more barges available to supply low sulfur fuel oil, pushing premiums down on the week, traders said. Demand for LSFO is considered "normal," and prices "poor," a trader said. High sulfur fuel oil premiums also declined and demand this month is "very good," the trader said.

For LSFO, Platts assessed the Fujairah-delivered marine fuel 0.5% sulfur bunker premium over the benchmark FOB Singapore marine fuel 0.5% sulfur cargo averaged $8.26/mt through the week ended Nov. 8, down 17% from a week earlier, Commodity Insights data showed. For HSFO, the Fujairah-delivered 380 CST bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo assessment dropped 5.3% over the same period to an average of $28.87/mt, the data showed. October bunker sales at the port are scheduled for release on Nov. 15 exclusively on the Platts Connect platform.