FUJAIRAH DATA: Oil product stocks see heaviest decline since 2022

Oil product inventories at Fujairah in the UAE decreased 23% in the week to July 27, marking the biggest decline since February 2022, according to Fujairah Oil Industry Zone data published July 29. The drop was led by a 41% fall in heavy distillates.

The total fell to 6.511 million barrels, a five-week low, the data showed. The 23% drop was the largest since the record 28% slump in the week ended Feb. 14, 2022, according to FOIZ data compiled by Platts, part of S&P Global Energy, since 2017.

Heavy distillates, used as shipping fuel and for power generation, retreated to 3.488 million barrels, the lowest in six weeks, the data showed.

Light distillates, such as gasoline and naphtha, rose 41% to 1.581 million barrels, rebounding from a record low in the previous week, according to the data.

Middle distillates, such as jet fuel and diesel, slipped 4.2% to 1.442 million barrels, a two-week low, the data showed.

Platts assessed the Fujairah-delivered 380 CST high sulfur fuel oil bunker premium over the 380 CST 3.5%S FOB Arab Gulf cargo assessment at $121.41/metric ton on July 28, down 2.9% day over day.

More HSFO deliveries are needed to replenish stocks, a UAE-based trader said. "We have been monitoring, and it seems all [replenishment cargoes] are floating outside Fujairah," the trader said. Traders were not in any hurry to refill tanks because of war-related safety concerns, according to the trader.

Demand for low-sulfur fuel oil is limited, with suppliers seeking to move barrels and clear near-term positions, another trader said.

Platts assessed the Fujairah-delivered 0.5%S marine fuel bunker premium over the benchmark FOB Singapore marine fuel 0.5% sulfur cargo value at $84.62/mt on July 28, down 0.4% day over day.