FUJAIRAH DATA: Oil product stockpiles climb to five-week high, led by light distillates

Oil product stockpiles at the UAE's Fujairah rose 23% in the week to Oct. 26, led by a 49% increase in light distillates such as gasoline and naphtha, according to Fujairah Oil Industry Zone data published Oct. 28.

The total inventory rose to 8.914 million barrels, the highest in five weeks. Stocks are still down 57% since Feb. 23, right before the Middle East war began, the data showed.

Light distillates gained to 1.942 million barrels, the third consecutive weekly increase from the record low of 559,000 barrels Oct. 5, according to the FOIZ data.

Heavy distillates used as ship fuel and for power generation gained 28% to 4.717 million barrels, a three-week high, while middle distillates, including jet fuel and diesel, were little changed at 2.255 million barrels after climbing to 2.774 million barrels Oct. 12 — the highest since Feb. 23, the data showed.

The backwardation structure in fuel oil markets encouraged selling and ex-wharf cargo costs are considered high due to limited resupply options, a trader said.

The Fujairah-delivered marine fuel 0.5%S bunker premium over the benchmark Singapore Marine Fuel 0.5%S cargo dropped 24% to $85.43/metric ton in the week to Oct. 27, a seven-week low, data from Platts, part of S&P Global Energy, showed.

The Fujairah-delivered 380 CST HSFO bunker premium over the Platts 380 CST 3.5%S FOB Arab Gulf fuel oil cargo assessment fell 7.5% over the same period to $118.58/mt, the lowest since Sept. 1, according to Platts data.