Fujairah oil product stocks climb to 4-week high on heavy distillates

FUJAIRAH, Oil product stockpiles at the Middle Eastern hub of Fujairah climbed 4.4 percent in the past week to a four-week high, led by gains in heavy distillates and residues, according to data released Wednesday by the Fujairah Oil Industry Zone.

Total stocks on 20th January stood at 21.301 million barrels, the most since 23rd December. Heavy distillates and residues, which includes fuel oils used for marine bunkers and power generation, climbed 15 percent to 11.794 million barrels, the highest since 9th December, data compiled by S&P Global Platts showed.

International Maritime Organisation, IMO, rules effective 1st January imposed a 0.5 percent sulphur limit in marine fuels. Heavy distillates include both high sulphur fuel oil, HSFO, and low sulphur fuel oil, LSFO. Middle distillates, which include marine gasoil, tumbled 26 percent in the past week, the biggest decline in 13 months.

“Due to IMO regulation in bunker specs, there is less demand now for heavy fuel oil and more demand for middle distillates to be used either as a blending component to make LSFO or to use it directly as marine gasoil,” a source said. Middle distillates also include gasoil, diesel, jet fuel and kerosene.

Fujairah has 12 bunker suppliers able to provide HSFO (at least 3.5 percent sulphur), 11 offering very low sulphur fuel oil (less than 0.5 percent), eight supplying marine gasoil (less than 0.5 percent sulphur) and seven trading low sulphur marine gasoil (less than 0.1 percent sulphur), according to a Port of Fujairah notice.

Meanwhile, light distillates including gasoline rose nine percent to 6.348 million barrels, a three-month high.

S&P Global Platts is the official publisher of the oil products data. Fujairah has the Middle East’s largest commercial storage capacity for refined products.

Source: Emirates News Agency