FUJAIRAH DATA: Heavy distillate stocks fall to two-month low

Oil product inventories at Fujairah in the UAE climbed 0.8% in the week ended Aug. 31 as gains in light and middle distillates offset another decline in heavy distillates used as fuel oil for shipping and power generation, according to Fujairah Oil Industry Zone data published Sept. 2.

Total oil product inventories rose to 6.412 million barrels, a two-week high, according to FOIZ data, compiled by Platts, part of S&P Global Energy, since 2017.

Heavy distillate stocks fell 15% to 3.122 million barrels, a two-month low, after a 32% slump in the week ended Aug. 24, according to the data.

Meanwhile, middle distillate stocks, such as jet fuel and diesel, rose 19% week over week to 1.741 million barrels, the highest since March 30, while light distillate stocks, such as gasoline and naphtha, climbed 25% to 1.549 million barrels, the highest since Aug. 3, the data showed.

Ship fuel demand in the spot market is picking up at Fujairah, a UAE-based trader told Platts. Fuel oil cargo availabilities are limited, as are ex-wharf offers, the 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 values at $74.96/metric ton on Sept. 1, down 4.5% week over week.

Platts also assessed the Fujairah-delivered 380 CST HSFO bunker premium against the 380 CST 3.5%S FOB Arab Gulf fuel oil cargo assessments 8.3% lower week over week at $117.99/mt Sept. 1.