Fujairah data: Light distillates down nearly 22% on supply constraints
Stocks in Fujairah were down 3.7% on the week, led by a reduction in light distillates of nearly 22%, according to data from the Fujairah Oil Industry Zone released Wednesday.
Total oil products stocks totaled 19.152 million barrels, down 3.7% from 19.898 million barrels the previous week.
Light distillates fell 21.7% to 6.497 million barrels, down 1.802 million barrels from 8.299 million barrels the previous week. It’s the lowest stock level for light distillates since September, and refinery maintenance has continued to support demand, since supply remains limited.
The gasoline market is facing supply constraints because of recent and upcoming outages at residual FCC units at refineries in Taiwan, Indonesia and Abu Dhabi’s Ruwais, S&P Global Platts Analytics said.
Middle distillates were down 7.3% on the week, dropping by 166,000 barrels to 2.1 million barrels. Cracks and timespreads for the East of Suez gasoil market were little-changed from the previous week, but one Singapore trader told Platts Analytics that buying interest has tapered off recently.
Last week, heavy residue stocks were down for the first time in three weeks. But in the week to date, heavy residue stocks started to build again and totaled 10.555 million barrels, up 13.1% from 9.333 million barrels the week before.
Heavy residue products include fuel oils, which are used for marine bunkers and power generation. Some barge operators and suppliers have started the process of converting HSFO barges to LSFO barges, as the market gears up for IMO 2020, which will implement new marine fuel regulations, Alexander Yap, an analyst at Platts Analytics in Singapore, said.
S&P Global Platts is the official publisher of the data.