Fujairah Oil Products Stocks Up 11% To 20-month High

Oil products stockpiles at the Port of Fujairah rose 11 percent over the past week to 23.931 million barrels by Monday, the highest level in 20 months, according to data obtained by S&P Global Platts on Wednesday

FUJAIRAH, (UrduPoint / Pakistan Point News / WAM - 20th Mar, 2019) Oil products stockpiles at the Port of Fujairah rose 11 percent over the past week to 23.931 million barrels by Monday, the highest level in 20 months, according to data obtained by S&P Global Platts on Wednesday.

The gain was led by heavy residue inventories posting a 17 percent week-on-week increase to reach 10.12 million barrels, a seven-month high, according to the data provided by the Fujairah Oil Industry Zone, FOIZ, to Platts. The total of 23.931 million barrels is the highest since July 2017.

Heavy residue products are heavy fuels used for marine bunkers and power generation and do not include non-energy residual products such as tar, bitumen or lubricants.

There was discussion in the market of some vessels heading to Fujairah for bunkering in place of Singapore owing to the persistence of lower prices in the Arab Gulf port relative to Singapore, according to a Platts report. "There were some tankers that could have gone to Fujairah because of lower prices there, but demand over there hasn’t been fantastic either," a bunker trader said, according to the report.

Platts data shows that the ex-wharf 380 CST bunker fuel premiums in Fujairah over the Mean of Platts Arab Gulf 180 CST strip have moved up almost US$1/mt in March, to average month-to-date US $3.67/mt, compared with an average of US $2.71/mt in February.

Inventories of light distillates rose 11 percent to 11.559 million barrels over the week, rebounding from almost the lowest level this year a week earlier. "I think there is still some more space for gasoline to get stronger," a trader told Platts. "Supply is tighter due to heavy regional turnarounds while demand is still healthy."

The increase in lights and heavy products more than made up for a 14 percent decline in middle distillate stocks to 2.252 million barrels.

The prompt gas oil market East of Suez saw some support from ongoing turnaround schedules across the region, particularly in India where some spot demand was seen to cover requirements, according to the Platts report.

Platts holds exclusive rights to publish Fujairah oil inventory data, and has deployed a blockchain network for its collation.