FUJAIRAH DATA: Oil products stocks sink to all-time low on shrinking fuel oil supplies

Oil products stockpiles at the UAE's Port of Fujairah fell to a record low on Sept. 15, with ship fuel inventories dropping to their lowest level in nearly seven years, according to the Fujairah Oil Industry Zone data published Sept. 17.

Total inventories tumbled 18% in the week ended Sept. 15 to 13.089 million barrels, the lowest since the port began sharing data with S&P Global Energy in January 2017. Total stocks are now down 16% since the end of 2024.

Heavy distillates used as fuel oil for shipping and power generation declined 24% to 5.390 million barrels, the lowest since December 2018. They are down 28% so far this year.

Middle distillates such as jet fuel and diesel dropped 24% to a four-week low of 1.651 million barrels, extending this year's drop to 16%. Light distillates, including gasoline and naphtha, fell 10% to 6.048 million barrels, the lowest since Nov. 25, 2024, erasing gains since the end of 2024.

Dar Blend

Ship fuel supplies have been hampered by reduced shipments of Dar Blend crude from South Sudan needed to supply some refineries operating at the port. The Montfort refinery, one of three refineries at the port, has stopped operations, according to the port.

South Sudan relies on a single export pipeline through neighboring Sudan to the Bashayer export terminal, from which its heavy sweet Dar and Nile blends are shipped to markets in the Gulf and Asia. Fujairah has not recorded any incoming crude shipments from Sudan in September, according to S&P Global Energy ship-tracking data.

In August, the UAE suspended “sailing permits” for voyages to Port Sudan, the sole loading point for heavy sweet Sudanese and South Sudanese crude, as well as prohibited cargo movements to or from the terminal, according to a directive from the UAE’s Ministry of Energy and Infrastructure.

Iraq fuel

Bunker feedstock supplies from Iraq have also tapered off in recent weeks, traders said. Average fuel oil shipments from Iraq to Fujairah dropped to 43,000 b/d in August, the lowest since October 2020, according to S&P Global Commodities at Sea data.

Traders said they expect more fuel oil supplies from West African nations in the next few weeks because of the limited supplies. High sulfur fuel oil is seeing "brisk demand" after a steady stream of HSFO term contracts were signed in recent days, reducing the availability of barge slots for immediate delivery, a trader said. Meanwhile, low sulfur fuel oil demand has been hurt by recent price gains, several traders said.

For HSFO, Platts, part of Energy, assessed Fujairah-delivered 380 CST HSFO bunker premium to the 380 CST 3.5%S FOB Arab Gulf fuel oil cargoes at an average of $14.07/mt so far in September, up from $12.50/mt in August.

For LSFO, the Platts-assessed Fujairah-delivered LSFO marine fuel premium over the FOB Singapore cargo values averaged $14.12/mt this month, up from $7.68/mt in August.