FUJAIRAH - Oil products stocks at the Port of Fujairah rose 2.4 percent on the week to 22.008 million barrels as of Monday, with gains in all categories, according to data exclusively obtained by S&P Global Platts on Wednesday.
Stocks of light distillates - which dominate the supplies - increased 0.8 percent to 11.394 million barrels, holding above 11 million barrels for a fourth consecutive week. On 28th January, gasoline and other light distillate stocks reached 11.975 million barrels, their highest level since stock reporting began at Fujairah.
"We are still close to the record high for lights, but we expect the trajectory over the next few months should be more positive for gasoline," said Alex Yap, senior analyst at S&P Global Platts in Singapore. "Gasoline stocks remain very high globally, but we are expecting that to reverse beginning with the US, and then Europe and East of Suez, as spring refinery maintenance kicks off in March." The front-month Singapore 92 RON gasoline crack spread to Dubai moved into positive territory on Monday, to 70 cents/b, up 71 cents/b on the day. This is a sign of expectations for tighter gasoline balances going forward, Yap said. The 92 RON gasoline crack to Dubai was last positive on 21st January, when it stood at 19 cents/b.
Stocks of middle distillates climbed 1.5 percent to 2.398 million barrels, the highest level since 19th November, 2018. Indian refinery maintenance is seen as adding support to the market, while rising outflows from China could put pressure on the market, a trader said.
Inventories of heavy residues rose 5.1 percent to 8.216 million barrels, even as traders noted that that the arbitrage was moving from the Middle East into Singapore. February is expected to see around 2.5 million mt of arbitrage flows from the Middle East to Singapore, a trader said. Singapore imported 1.42 million mt from the region in the four weeks-ending 30th January, data from Enterprise Singapore showed.
S&P Global Platts holds exclusive rights to publish Fujairah oil inventory data, and has deployed a blockchain network for its collation.
© Copyright Emirates News Agency (WAM) 2019.