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

Oil products inventories at the UAE's Port of Fujairah fell 13% in the week to Jan. 20, with declines registered across fuel oils, jet fuel and diesel and gasoline and naphtha, according to Fujairah Oil Industry Zone data published Jan. 22.

The total decreased to 16.126 million barrels, the first drop in three weeks and a three-week low, according to FOIZ data. Heavy distillates declined 15% to 7.263 million barrels, the lowest in six weeks.

Middle distillates, such as jet fuel and diesel, were down 12% to 2.522 million barrels, a two-week low. Light distillates, such as gasoline and naphtha, shrank 10% to 6.341 million barrels, a three-week low.

Shipping demand

Shipping demand picked up for high sulfur fuel oil, traders said, but premiums for both HSFO and low sulfur fuel oil declined.

"Good demand these past two weeks," a Fujairah-based trader said. But suppliers were even more eager to meet the demand, pushing premiums down for HSFO, along with LSFO.

Some suppliers had to line up to reload barges, pushing back deliveries to early February from later in January, the trader said.

The Platts-assessed Fujairah-delivered 380 CST bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo averaged $16.27/mt from Jan. 2 to Jan. 21, down from $22.07/mt in December. Platts is part of S&P Global Energy. The premium fell to $12.89/mt on Jan. 21, the lowest since Jan. 24, 2024.

The Platts-assessed Fujairah-delivered marine fuel 0.5% sulfur bunker premium over the benchmark FOB Singapore marine fuel 0.5%S cargo averaged $6.51/mt from Jan. 2 to Jan. 21, down from $9.07/mt in December. The premium dropped to $3.34/mt on Jan. 21, the lowest since Oct. 20, 2023.

Refined oil products exports from Fujairah have declined to 427,000 b/d so far in January, the lowest since February, according to Kpler data. Pakistan is the leading destination, split between fuel oils and gasoline. Imports have climbed to an average of 662,000 b/d, a two-month high, leaving the balance at a surplus of 235,000 b/d, the most since January 2018, the data show.

Bahrain has picked up shipments to Fujairah, averaging 33,800 b/d so far this month, covering gasoil and a record 25,600 b/d of jet fuel, according to the data. The country's only refinery, Bapco, is undergoing a $7 billion upgrade and capacity expansion, with a focus on middle distillates such as diesel and jet fuel.