Dubai — Stockpiles of light, middle and heavy distillates at the oil trading and bunkering hub of Fujairah declined to a two-month low July 6, extending declines from the record set in early June amid signs of improved demand for transportation fuels as nations ease travel restrictions.
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Total inventory stood at 27.361 million barrels as of July 6, down 4% week on week, the Fujairah Oil Industry Zone said July 8.
Stockpiles are now the lowest since May 4 and down 11% since the record 30.71 million barrels on June 1, according to the inventory data compiled and published by S&P Global Platts since January 2017.
Light distillates such as gasoline, naphtha and other light petrochemical feedstocks slipped 9% week on week to 7.239 million barrels in the week to July 6, the lowest since May 4.
Middle distillates such as jet fuel, kerosene and marine gasoil dropped 6% to 3.857 million barrels, the third consecutive weekly decline and the lowest since April 20.
Heavy distillates and residues used in marine bunkers and for power generation fell 1% to 16.265 million barrels, the lowest since June 1.
The gasoline market is getting help from Pakistan, which has stepped up buying since the end of May due to low refinery run rates and a sharp recovery in demand, Platts said in a separate report July 8. Pakistan is known to buy gasoline from Fujairah.
Demand for jet fuel is getting a boost as Hungary's Wizz Air launched its first flight to Abu Dhabi International Airport on July 1. Dubai, the hub for Emirates, welcomed tourists on July 7 for the first time since most passenger flights were suspended in late March.
Production of gasoil in the East of Suez market has dropped with end-user demand largely met for the month, according to the Platts report.
Demand for bunker fuel in Fujairah has picked up as prices have climbed in line with crude oil, according to the Platts report. Delivered bunker prices for marine fuel maximum 0.5% sulfur in Fujairah was assessed by Platts at $322/mt on July 7, up from $310/mt a week earlier.