FUJAIRAH DATA: Oil product stocks rise another 17% in week to June 29

Oil product inventories at Fujairah in the UAE climbed 17% in the week to June 29, with heavy distillates again leading the gains, according to Fujairah Oil Industry Zone data published July 1.

The total climbed to 7.999 million barrels, the highest since March 13 and building on the record 33% increase in the prior week. Stocks are still down 61% since the Middle East war began, with light distillates such as gasoline and naphtha at an all-time low.

Heavy distillates increased 32% in the latest week to 5.297 million barrels, the highest since March 30, while middle distillates such as jet fuel and diesel climbed 5.6% to 1.499 million barrels, also the highest since March 30, according to the FOIZ data.

Light distillates fell 14% to 1.203 million barrels, the 11th weekly drop in the past 12 weeks to the lowest on record, according to the FOIZ data.

Heavy distillates were again boosted by multiple deliveries of low sulfur fuel oil supply, two traders told Platts, part of S&P Global Energy. The Platts-assessed Fujairah-delivered 0.5%S marine fuel bunker premium over the benchmark FOB Singapore Marine Fuel 0.5% sulfur cargo value was at $210/metric ton June 30, down 46% from a week earlier.

While high sulfur fuel oil supply has been limited, they are expected to increase in the next few weeks, the traders said.

The Platts-assessed Fujairah delivered 380 CST HSFO bunker premium to the 380 CST 3.5%S FOB Arab Gulf fuel oil cargo assessment was at $120.13/mt June 30, down 6.9% from a week earlier.

Demand is sluggish and many ships prefer to use other ports for fuel supply, including in India and West Africa, because prices are lower than in Fujairah, the traders added.