Oil product stockpiles at the Port of Fujairah on the UAE's east coast dipped as middle distillates plunged, reversing the previous week's biggest jump since November 2019.
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The total inventory was 15.710 million barrels on Oct. 25, down by 3.7% from a week earlier, according to Fujairah Oil Industry Zone data provided exclusively to S&P Global Platts on Oct. 27. Middle distillates plunged 16.8% to 2.935 million barrels a week after stocks surged 36%.
The FOB Fujairah Gasoil assessment was at a premium of $1.23/b to the Mean of Platts Arab Gulf gasoil assessment Oct. 26, taking into consideration prices in the FOB Fujairah gasoil market as well as differentials for recent cargo trades heard in the Middle East.
Spot trading activity at the major bunkering hubs of Singapore and Fujairah was said to be above-average for the second consecutive day Oct. 26, according to traders.
Demand was said to be particularly robust at the Middle Eastern port of Fujairah. A drop in the outright price led by a dip in crude markers had likely caused buyers, especially those that have been on the sidelines on account of high outright prices in recent days, to rush in to meet their immediate requirements, said traders.
Fujairah's heavy distillate stocks dipped 0.6% to 7.707 million barrels.
Fujairah-delivered marine fuel 0.5%S bunker was assessed at $624/mt on Oct. 26, down $6/mt on the day.
The spread between marine fuel 0.5%S cargo values in Singapore and Fujairah narrowed to a near seven-month low of 88 cents/mt on Oct. 21 as the IMO-compliant fuel's gain in Fujairah outpaced that of Singapore, Platts data showed.
The Fujairah marine fuel 0.5%S value is typically lower than that of Singapore as the Middle Eastern bunkering hub is closer to the West, which is the source of cargoes and its components.
The supply of marine fuel 0.5%S in Fujairah has tightened as robust demand for the bunker fuel depleted inventories and tightened barge availability, traders said.
Fujairah's light distillate stocks grew 0.6% to 5.068 million barrels, a two-week high.