Stockpiles of oil products at the UAE port of Fujairah rose 13.5% in the week to April 19, marking an eight-week high, with the biggest increase recorded in heavy distillates, the latest data from the Fujairah Oil Industry Zone showed.
The total stockpile stood at 21.656 million barrels, up by 2.569 million barrels from a week ago and the highest since Feb. 22, when it was at 23.180 million barrels, according to the data provided exclusively to S&P Global Platts on April 21.
Heavy distillates stockpiles, including fuel for power generation and bunkers, increased by almost 30% to 12.946 million barrels, the highest level since Sept. 7, 2020, the data showed.
Demand for marine fuels remained weak in Fujairah, the world’s third-largest bunkering hub, with prices taking a dip, according to traders.
Spot trading activity was heard to be lackluster in Singapore and the Middle Eastern port of Fujairah, traders told Platts.
“At the moment, the market is quite oversupplied with marine fuel 0.5%S while demand remains rather tepid,” a Fujairah-based trader said.
The premium for Fujairah-delivered 380 CST HSFO narrowed to $28.99/mt on April 20, 40 cents/mt below April 19.
Another Fujairah-based trader said the market “remains tough for suppliers facing competition, and the weak prices are not helping either.”
Jet fuel demand
Middle distillate stocks in Fujairah, including jet fuel and diesel, increased by 4.7% on the week to 3.228 million barrels.
The FOB jet fuel/kerosene market was a tad weaker April 20 amid negative indicators on the air travel front in the Middle East, particularly in Saudi Arabia.
Saudi Arabia’s jet fuel exports nosedived 49% year on year to hit a five-month low in February, as new variants of the coronavirus and a spike in infections led governments around the world to keep borders shut, weighing on demand from the downstream aviation sector, latest data from the Joint Organizations Data Initiative, or JODI, showed.
Saudi Arabia’s aviation fuel outflows totaled 450,000 mt in February, marking a 23% month-on-month decline. The last time jet fuel exports were lower was in September, at 357,000 mt.
Meanwhile, light distillate stocks in Fujairah, such as gasoline and naphtha, declined by 8.8% to 5.482 million barrels, the third consecutive weekly decline.
This is their lowest level since Nov. 9, when they were at 5.374 million barrels.
Fujairah’s 95 RON gasoline market could rise to pre-pandemic levels in the coming months on increased demand and limited supply, according to regional traders. Gasoline availability has been tight as supply has not been matching demand.
“There are minor refinery shutdowns and demand is picking up as summer comes,” a regional trader told Platts.
Source: PLATTS
