Oil product stockpiles at the UAE's Port of Fujairah climbed 6.6% to a three-week high in the seven days ended Dec. 12, with gains across all categories, according to Fujairah Oil Industry Zone data published Dec. 14.
Total inventories were at 24.360 million barrels as of Dec. 12, the highest since Nov. 21, the FOIZ data provided exclusively to S&P Global Commodity Insights showed. Middle distillates jumped 21% over the latest week while light distillates climbed 8.9% and heavy distillates increased 2%.
Total stockpiles have climbed 52% this year, heading for a record gain since S&P Global began compiling the data in 2017. The drop would follow a record decline of 32% in 2021.
The gains this year have been led by light distillates, up 79% so far, followed by middle distillates which are up 78%. Heavy distillates are up 34% so far in 2022. Fujairah imports of Russian oil products are also heading for an all-time record this year, led by fuel oils, according to Kpler shipping data.
Stockpiles of light distillates such as gasoline and naphtha rose to 7.766 million barrels on Dec. 12, the highest in 10 weeks, and middle distillates such as jet fuel and kerosene advanced to 3.812 million barrels, a nine-week high.
Heavy distillates and residues used as fuel for power generation and marine bunkers stood at 12.782 million barrels as of Dec. 12, the highest in two weeks.
The low sulfur fuel oil premiums at Fujairah over FOB Singapore have surged in recent days, curbing demand that had been on the rebound in early December, local traders said.
The premium of Platts Fujairah-delivered marine fuel with 0.5% sulfur over FOB Singapore marine fuel cargo assessments touched a three-month high of $41.46/mt on Dec. 13, according to S&P Global data. Traders attributed the jump in premiums to delayed arrivals of blending components at Fujairah.
LSFO bunker deliveries are estimated at four to 10 days, up from three to four days in recent weeks, suppliers said. That has led to logjams and congestion for ships waiting to fill up, they said.
The "majority of sellers are not able to supply before Dec. 22, prompt availability is a problem. Though demand is slightly lower now, volumes [for each inquiry] are larger," a bunker supplier told S&P Global.