Oil product inventories at Fujairah on the UAE’s east coast fell as light distillate stocks plunged after soaring a week earlier.

The total inventory was 22,627 million barrels as of June 21, down 3.6 % from a week earlier, according to Fujairah Oil Industry Zone data provided exclusively on June 23 to S&P Global Platts.

Stocks of light distillates, including gasoline and naphtha, plummeted 23.7% to 5.427 million barrels, reversing the previous week’s trend.

In the previous week, light distillates soared 42.9% to 7.115 million barrels, recovering from a near record low.

Singapore’s imports of naphtha, reformates and other blend stocks fell 47.94% week on week to 102,078 mt over June 10-16 due to lower volumes of Middle East shipments, Enterprise Singapore data showed.

The Middle East is typically the main source of Singapore’s naphtha imports, but volumes from the UAE declined 60.92% week on week to just 59,983 mt, the data showed.

Middle distillates

Stocks of Middle distillates, including jet fuel and diesel, rose 6.6% to 4.256 million barrels.

The FOB Singapore jet fuel/kerosene market remained stable on June 21 despite tepid demand, with positive outlook ahead.

The Q3-Q4 jet fuel/kerosene spread — an indication of near-term sentiment — was assessed at minus 32 cents/b at the Asian close on June 21, narrowing 1 cent/b day on day as the aviation industry sees optimistic signs of recovery in the near future

Heavy distillates, including fuel for power generation and bunkers, increased 4.7% to 12.944 million barrels.

Bunker demand in the major Asian bunkering hubs of Singapore and Fujairah was said to have tapered off June 22 as compared to that on the first day of the trading week, traders told Platts.

In Fujairah, offers for the IMO-complaint bunker grade was heard at $529-$532/mt at the start of the MOC process. Sellers however subsequently lowered offers to around $427/mt towards the close of the MOC process to attract buying interest. Even as no trades were heard concluded during the MOC process, fixtures were later heard at $523-$524/mt levels.

Fujairah-delivered marine fuel 0.5 %S bunker was assessed at $527/mt, up $4/mt on the day. Fujairah delivered marine fuel 0.5 %S premium to FOB Singapore marine fuel 0.5 %S cargo fell $1/mt on the day at 53 cents.
Source: Platts