FUJAIRAH DATA: Oil products stocks drop from 8-month high

Oil products inventories at the UAE's Port of Fujairah fell 1.5% in the week ended Feb. 17, led by a 10% decline in gasoline, naphtha and other light distillates, according to Fujairah Oil Industry Zone data published Feb. 19.

The total fell to 19.946 million barrels after hitting an eight-month high a week earlier, according to FOIZ data. Light distillates fell to 7.606 million barrels, a three-week low.

Heavy distillates used as fuel for power generation and shipping dropped 2.1% to 10.007 million barrels after also reaching an eight-month high a week earlier. Middle distillates such as jet fuel and diesel jumped 50% to 2.333 million barrels, the highest in three weeks.

In shipping, some low sulfur fuel oil buyers delayed purchases because of recent volatility in crude oil prices, traders said. Platts, part of S&P Global Energy, assessed Dated Brent dropped to $74.87/b on Feb. 14 from $77.03/b just three days earlier.

As a result, LSFO suppliers were able to clear out a backlog of orders that built up from previous windy conditions.

The Platts-assessed Fujairah-delivered marine fuel 0.5% sulfur bunker premium over benchmark FOB Singapore marine fuel 0.5%S cargo averaged $6.63/mt this month through Feb. 18, up from $6/mt for all of January.

On high sulfur fuel oil, demand was sufficient that some suppliers sold out on some deliveries and time slots for deliveries the rest of this month are running out, traders said.

The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium to fuel oil 380 CST 3.5%S FOB Arab Gulf cargoes averaged $23.21/mt this month through Feb. 18, up from $17.07/mt for all of January.

Refined product exports from Fujairah are averaging 483,000 b/d in February, up from 403,000 b/d in January and heading for the first month-over-month increase since November, according to Kpler data. Some 135,000 b/d of products are heading to South Korea, a monthly record and led by 117,000 b/d of fuel oils.