Fujairah data: Weekly oil products stocks jump as IMO 2020 takes effect
Oil product stockpiles at the UAE’s trading hub in Fujairah rose in the past week as IMO 2020-mandated marine fuel requirements took effect.
Stockpiles of heavy distillates and residues, including marine fuel, advanced 11% to 11.205 million barrels as of January 6, the Fujairah Oil Industry Zone reported Wednesday. Total inventories, including light, middle and heavy distillates, jumped about 12% to 20.735 million barrels — a two-week high.
Fujairah is expanding shipping and storage facilities for refined products and crude as the International Maritime Organization’s 2020 rule took effect January 1, requiring ships to use fuel that has no more than 0.5% sulfur, compared with 3.5% previously. Fujairah plans to conduct spot checks this year on ships taking bunker fuel to make sure they comply with the new rule, Captain Mousa Murad, the port’s general manager, told S&P Global Platts in December 2019.
Middle distillates fell 2.1% to 3.644 million barrels in the past week and light distillates rose almost 24% to 5.886 million barrels.
Heavy distillates include fuels used for power generation, while middle distillates cover jet fuel, kerosene, gasoil, diesel and marine bunker gasoil.
The light distillates category include gasoline, gasoline blending components like reformate and alkylate, naphtha, and other light petrochemical feedstocks and condensates that are stored in white product tanks and are of an API of 45 degrees and above.
Light distillates was the only category to show an inventory decline for 2019, tumbling 51% after more than doubling in 2018 and declining almost 15% in 2017. Middle distillates jumped 155% last year and heavy distillates climbed 62%. Total stocks rose 7% for the year after a 2.3% gain in 2018 and a 12% drop in 2017.
The Fujairah Oil Industry Zone data started being reported in 2017.
Platts is the official publisher of the data.