FUJAIRAH DATA: Oil product stocks edge up on light distillates

Oil product inventories at Fujairah in the UAE inched up 0.2% in the week ended July 13, led by a 12% rise in light distillate stocks, according to Fujairah Oil Industry Zone data published July 15.

Total stocks rose to 10.147 million barrels, hitting a three-month high and extending its winning streak to a fourth consecutive weekly gain, according to FOIZ.

Stocks of light distillates, such as gasoline and naphtha, jumped to a five-week high of 1.77 million barrels, the data showed.

Heavy distillate stocks used as shipping fuel and for power generation slipped 0.7% to 7.262 million barrels, the first drop in six weeks, according to the data.

Inventories of Middle distillates, such as jet fuel and diesel, dropped 9.7% to a three-month low of 1.115 million barrels, the data showed.

Demand eases

Demand for ship fuel at Fujairah, the largest bunkering hub in the Middle East, has faltered in recent days as ship traffic through the Strait of Hormuz declined due to resumed attacks, three market traders told Platts, part of S&P Global Energy.

Demand has dropped "for sure," one trader said. While demand had been rising before the recent ship attacks, large requirements for very low sulfur fuel oil "look to be on hold now," the trader said.

Platts assessed the Fujairah-delivered 0.5%S marine fuel bunker premium to benchmark FOB Singapore marine fuel 0.5% sulfur cargoes at $104.39/metric ton on July 14, up 53% from a week earlier. The gain was due to limited LSFO supply, traders said.

As for high sulfur fuel oil prices, the Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium to 380 CST 3.5%S FOB Arab Gulf fuel oil cargo values rose to $105.20/mt July 14, up $13.28/mt from the preceding week.