FUJAIRAH DATA: Oil product stocks rise 33% to 6.846 mil barrels

Oil product inventories at Fujairah in the UAE rose a record 33% in the week ended June 22 to 6.846 million barrels, the highest level since April 27, according to Fujairah Oil Industry Zone data published June 24.

Stocks had dropped to a record low a week earlier, with the total down 75% since the start of the war, according to FOIZ data.

Stocks of heavy distillates, used as fuel for power generation and shipping, jumped a record 66% to 4.024 million barrels, the most since April 6, the data showed.

Middle distillates such as jet fuel and diesel climbed 5.2% in the latest week to 1.42 million barrels, also the highest since April 6, according to FOIZ data.

Light distillates increased 1.9% to 1.402 million barrels, the first increase since the week ended April 6.

The heavy distillates surge was driven by the arrival of low sulfur fuel oil at Fujairah, with plans to load the supplies onto barges for delivery to ships over the next few days, three UAE traders told Platts, part of S&P Global Energy.

LSFO supplies had dwindled in recent weeks, sending bunker fuel premiums to record levels. The inventory rebuild is now pressuring those premiums lower, according to three UAE traders.

Platts assessed the Fujairah-delivered 0.5%S marine fuel bunker premium over benchmark FOB Singapore marine fuel 0.5% sulfur cargo at $392/metric ton June 23, down 35% from the record-high premium of $603.44/mt a week earlier.

Platts assessed the Fujairah delivered 380 CST HSFO bunker premium to 380 CST 3.5%S FOB Arab Gulf fuel oil cargoes at $128.97/mt June 23, down 15% from a week earlier.