FUJAIRAH DATA: Oil product stocks drop for first time in five weeks

Oil product inventories at Fujairah in the UAE declined 16% in the week ended July 20, the first drop in five weeks, led by lower light distillate stocks, according to Fujairah Oil Industry Zone data published July 22 by the Fujairah Oil Industry Zone.

Total stocks fell to a three-week low of 8.492 million barrels after nearly doubling in the previous four weeks, according to FOIZ.

Stocks of light distillates, such as gasoline and naphtha, fell 37% to a record low of 1.121 million barrels, the data showed.

Heavy distillate stocks used as shipping fuel and for power generation retreated 19% to a three-week low of 5.865 million barrels, according to the data.

Inventories of middle distillates, such as jet fuel and diesel, rose 35% to a three-month high of 1.506 million barrels, the data showed.

HSFO premium gains

For high-sulfur fuel oil used in shipping, the Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium against 380 CST 3.5%S FOB Arab Gulf fuel oil cargo rose to $116.67/metric ton July 21, up nearly 11% from a week earlier.

"The tension in the region is making everyone uncertain about future levels in a few days or weeks ... so whoever has secured cargo is charging more and more," a UAE-based trader told Platts, part of S&P Global Energy.

Low-sulfur fuel oil was seen plentiful, with new cargoes loaded into barges in recent days, three market traders told Platts.

Platts assessed the Fujairah-delivered 0.5%S marine fuel bunker premium over the benchmark FOB Singapore marine fuel 0.5% sulfur cargo values at $94.42/mt on July 21, down 9.6% from a week earlier.