FUJAIRAH DATA: Fuel oil leads product stocks to three-month high

Oil product inventories at Fujairah in the UAE rose 27% to a three-month high in the week to July 6, led by a 38% increase in heavy distillates, which hit their highest level since March 2, according to Fujairah Oil Industry Zone data published July 8.

The total reached 10.129 million barrels, the highest since April 6. Stocks have almost doubled from a record low of 5.145 million barrels on June 15, according to FOIZ data compiled by S&P Global Energy since 2017. The Middle East war began Feb. 28.

Heavy distillate inventories, used as shipping fuel and for power generation, rose to 7.315 million barrels, up more than fourfold from the record low of 1.722 million barrels on June 1.

Stocks of light distillates, such as gasoline and naphtha, increased 31% to 1.579 million barrels, rebounding from their all-time low of 1.203 million barrels a week earlier, as of June 29.

Middle distillate inventories, including jet fuel and diesel, fell 18% to 1.235 million barrels, marking their first drop in six weeks.

More ships have transited the chokepoint between Iran and Oman since the 60-day ceasefire began June 17. However, tensions resurfaced as three ships were attacked over July 6-7 around the strait near the Omani coast.

Supplies of low-sulfur fuel oil at Fujairah were considered plentiful, which has weighed on premiums for the ship fuel, according to four traders who spoke to Platts, part of S&P Global Energy.

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 $68/metric ton on July 7, the lowest since April 27 and down 68% from the prior week.

Platts assessed the Fujairah-delivered 380 CST HSFO bunker premium over the 380 CST 3.5%S FOB Arab Gulf fuel oil cargo value at $91.72/mt on July 7, down 24% from the preceding week.