FUJAIRAH DATA: Oil product stocks drop to 10-month low

Stockpiles of oil products at the UAE’s Port of Fujairah declined 1.7% in the week ended Aug. 12 to a 10-month low, according to Fujairah Oil Industry Zone data.
The total fell to 16.458 million barrels, the lowest since Sept. 25, 2023, FOIZ data published Aug. 14 showed. Stockpiles have dropped 5.1% since the end of 2023.
Heavy distillates used for power generation and as ship fuel dropped 8.7% to 8.510 million barrels, the lowest since Feb. 19.
Middle distillates such as jet fuel and diesel rose 6.5% to 1.792 million barrels, rebounding from a four-month low. Light distillates such as gasoline and naphtha gained 6.5% to a two-week high of 6.154 million barrels.
Demand for high sulfur fuel oil contributed to the decline in heavy distillates, with demand for low sulfur fuel oil has lagged, bunker suppliers told S&P Global Commodity Insights.
“HSFO [barging schedules] might be a bit tighter” on the week, a Fujairah trader said. More HSFO supplies are being offered starting around the week of Aug. 19, indicating minimal barge availabilities for the time being, the trader said.
Shipowners are seeking “sizable” supplies of HSFO but heavy distillates may still increase in the next few weeks as peak demand from the power sector for air conditioning has passed, traders said.
The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf slipped to average $19.96/metric ton Aug. 1-13 from $23.9/t in July, Commodity Insights data showed.
“There’s no shortage of oil in the market,” a Fujairah-based bunker supplier said, referring to LSFO.
The Platts-assessed Fujairah-delivered marine fuel 0.5% sulfur bunker premium over benchmark FOB Singapore marine fuel 0.5%S cargo averaged $11.85/t Aug. 1-13, down from $12.13/t for all of July, according to Commodity Insights data.
Oil product exports from Fujairah totaled 2.39 million barrels in the week started Aug. 5, down from 4.1 million barrels a week earlier, according to Kpler shipping data. Fuel oils dominated the shipments to destination countries Malaysia, Mozambique and Comoros Islands, the data showed. Naphtha was also exported in the latest week, although the destination country was still unknown, Kpler data showed.
So far since the end of 2023, stocks of light distillates have climbed 31%, heavy distillates have dropped 16% and middle distillates have dropped 28%.
Source: Platts