FUJAIRAH DATA: Oil products stocks climb to eight-month high on fuel oils

Oil products stockpiles at Fujairah in the UAE climbed 2.1% in the week ended Dec. 8 to an eight-month high, with heavy distillates leading gains with a 3.4% increase, according to Fujairah Oil Industry Zone data published Dec. 10.

The total increased to 23.512 million barrels, the highest since April. Inventories have increased 52% since the end of 2024.

Heavy distillates used for power generation and shipping rose to 12.928 million barrels, also an eight-month high. Light distillates, including gasoline and naphtha, slipped 0.1% to 7.316 million barrels.

Middle distillates, such as jet fuel and diesel, rose 1.7% to 3.268 million barrels, a two-week high.

Heavy distillates have increased 72% since the end of 2024, while light distillates climbed 21% and middle distillates rose 66%, according to the FOIZ data compiled by S&P Global Energy since 2017.

Choppy demand

Regional traders said that choppy demand in the downstream market for both low- and high-sulfur fuel oils drove stockbuilds, putting delivered premiums under pressure.

A few HSFO requirements for substantial volumes allowed some suppliers to move cargoes, but overall stocks are seen as very ample for the near term, according to bunker suppliers.

Moreover, competition among players has also stiffened as sellers eagerly sought to capture inquiries and fill the broadly available prompt barging slots, trader sources said.

The Platts-assessed Fujairah-delivered marine fuel 0.5%S premium over FOB Singapore marine fuel 0.5%S cargoes was marginally higher for the Dec. 1-10 period, averaging $6.89/mt compared with $6.53/mt for all of November, though well below the $11.15/mt average for October.

The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium to fuel oil 180 CST FOB Arab Gulf cargoes rose to an average of $3.60/mt so far in December from minus $1.94/mt in November, but still significantly below the $22.25/mt average across October.