SINGAPORE - Oil product inventories in the United Arab Emirates' (UAE) Fujairah bunkering and oil hub in the Middle East jumped to record highs in the week to June 1, data from industry information service S&P Global Platts showed on Wednesday.
Weak fuel demand due to lockdowns aimed at curbing the spread of the coronavirus contributed to the record stock volumes as well as recent market conditions, known as contango, which incentivise the storage of oil products for sale at a later date when prices are higher, two trade sources said.
Fujairah's overall oil product inventories climbed to 30.71 million barrels in the week to June 1, above the previous record of 30.262 million barrels in the week to May 18, the data showed.
Overall weekly Fujairah oil inventories have set record highs in three of the four past weeks.
Inventories for middle distillates, which include gasoil and jet fuel, also rose to a record high in the week to Monday at 5.997 million barrels, the data showed.
Fujairah's light distillate inventories, which include gasoline, stood at a near one-year high of 8.549 million barrels while those for residual fuel oils were at a two-week high of 16.164 million barrels, the data showed.
Residual fuel oil stocks were at a near record high of 16.453 million in the week to May 18.
(Reporting by Roslan Khasawneh; Editing by Kim Coghill) ((email@example.com; +65 6870 3121; Reuters Messaging: firstname.lastname@example.org))