Fujairah oil product stocks drop to nine-month low, wiping out 2020 gains

FUJAIRAH - Oil products stockpiles at Fujairah on the UAE's East Coast tumbled to a nine-month low, wiping out gains for the year as stocks of marine bunkers and fuel for power declined to the lowest in more than a year.

Inventories as of 12th October stood at 19.686 million barrels, down 4.9 per cent from a week earlier and the lowest since 30th December, 2019, according to data released today by the Fujairah Oil Industry Zone, FOIZ. Stockpiles have dropped for a record seven weeks in a row, falling 26 per cent since 24th August, and have declined a whopping 36 per cent since the record high of 30.71 million barrels set on 1st June.

Stocks of marine bunkers and fuel for power, under the category of heavy distillates and residues, were at 8.965 million barrels as of 12th October, down 15 per cent from a week earlier and the lowest since 29th July, 2019.

Exports of heavy distillates from Fujairah in the week started 5th October soared to 3.39 million barrels, the most since the week beginning 13th January, according to data analytics firm Kpler. Some 716,000 barrels of fuel oil was destined for China, the biggest shipment to that country since 13th January, and Tanzania purchased 344,000 barrels of fuel oil, the most to that country since the week beginning 21st August, 2017.

There were at least two loadings of fuel oil for floating storage in the Fujairah lightering zone in the week started 5th October, the Kpler data showed. These ships typically supply bunker barges which then sell bunker clips to vessels.

Fujairah bunker fuel with 0.5 per cent sulphur was assessed by S&P Global Platts at US $ 336/mt as of 13th October, US $ 5/mt below the Singapore assessment. Fujairah is the most important bunkering area in the Middle East.

Middle distillates stocks, including jet fuel and gasoil, jumped 15 per cent in the week ended 12th October to 4.435 million barrels, a three-week high. Light distillates such as gasoline and naphtha were little changed at 6.286 million barrels.

Platts is the official publisher of the inventory data since January 2017.