Oil product inventories at Fujairah on the UAE’s east coast rose as light distillate stocks soared to the highest level since April 5, recovering from a near record low reached in the previous week.
The total inventory was 23.470 million barrels as of June 14, up 5.1% from a week earlier, according to Fujairah Oil Industry Zone data provided exclusively on June 16 to S&P Global Platts.
Stocks of light distillates, including gasoline and naphtha, surged 42.9% to 7.115 million barrels, reversing the previous week’s trend.
In the previous week, light distillates fell to the lowest level since Oct. 26, 2020, when they hit a record low of 4.198 million barrels. The drop was triggered by growing demand for naphtha in Asia and refinery issues in Saudi Arabia and the UAE.
Stocks of Middle distillates, including jet fuel and diesel, increased 14.6% to 3.993 million barrels.
FOB Fujairah jet fuel/kerosene was assessed at a premium of 65 cents/b to the Mean of Platts Arab Gulf jet fuel/kerosene assessment on June 15, taking into consideration prices in the FOB Fujairah gasoil market as well as differentials for recent cargo trades heard in the Middle East.
Heavy distillates, including fuel for power generation and bunkers, fell 10.9% to 12.362 million barrels, the lowest level since May 24.
Bunker fuel demand was muted in Fujairah on June 15, market sources told Platts.
Market sources said that buyers of 0.5%S marine fuel are treading cautiously around fixing term contract above their base requirements, due to a volatile ICE Brent.
“The wariness among buyers has weakened valuations of both spot and term contracts, undermining margins on Fujairah -delivered premiums, as suppliers engage in a price competition,” a Fujairah-based bunker supplier said.
Fujairah-delivered 0.5%S marine fuel was heard offered at $524-$527/mt, with offers deliverable at the prompt from June 20. The grade was assessed at $524/mt on June 15, unchanged from the previous day, Platts data showed.
The premium for Fujairah-delivered Marine Fuel 0.5 %S bunker over FOB Singapore Marine Fuel 0.5 %S cargo ticked $1.12/mt lower from June 14 to $2.29/mt on June 15.
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