FUJAIRAH DATA: Oil products stocks drop 2.5% on week led by diesel group

Oil products stockpiles at the UAE's Port of Fujairah dropped 2.5% in the week to Jan. 9, led by an 11% drop in middle distillates like jet fuel and diesel, according to Fujairah Oil Industry Zone data published Jan. 11.

Total inventories were at a three-week low of 19.839 million barrels as of Jan. 9, the FOIZ data provided exclusively to S&P Global Commodities Insights showed.

Middle distillates fell to 2.761 million barrels, also a three-week low.

Heavy distillates declined 3.3% to 10.059 million barrels, the lowest since June 13, 2022. Heavy distillates have been near or at six-month lows since mid-December.

Bucking the trend, light distillates including gasoline and naphtha rose 2.8% to 7.019 million barrels, a two-week high.

Demand for both low and high sulfur fuel oil bunker grades contributed to the drop in heavy distillates stocks and trading activity has picked up, according to market sources.

"Loading slots [at terminals] for LSFO have opened up a little recently [since January] and seems ok for [at least] the next two weeks," according to a Fujairah-based trader, adding that more barges could refuel promptly as local terminals were less congested than recent weeks.

Demand for LSFO bunker deliveries for the first half of January may support delivered premiums, a Fujairah bunker supplier said.

The Platts Fujairah-delivered marine fuel 0.5%S bunker premiums over the benchmark FOB Singapore Marine Fuel 0.5%S cargo values inched up to average $37.47/mt Jan. 3-10 from $35.58/mt for December 2022, according to S&P Global data.

The Platts Fujairah-delivered 380 CST high sulfur fuel oil bunker premium over the FO 380 CST 3.5%S FOB Arab Gulf cargo assessments rose to average $46.85/mt Jan. 3-10, compared with $35.66/mt in December, according to S&P Global data.