DUBAI, Oil product stockpiles at the UAE’s Fujairah port rebounded from a 13-month low, with middle distillates expanding to near the record high set in June.
Inventories as of 2nd November were at 20.243 million barrels, up 9.6 percent from a week earlier, according to data released on Wednesday from the Fujairah Oil Industry Zone.
Stocks of jet fuel, diesel and other middle distillates climbed 26 percent on the week to 5.447 million barrels, the highest since 15th June and close to the record 5.997 million barrels set on 1st June, according to the data provided exclusively to S&P Global Platts.
Stockpiles of light distillates such as gasoline also jumped 26 percent to 5.303 million barrels, after hitting a record low on 26th October.
Heavy distillates and residues such as marine bunkers and fuel for power generation declined 5 percent on the week to 9.493 million barrels.
Middle distillates stockpiles have ballooned 46 percent this year as the coronavirus pandemic crippled demand for jet fuel, the worst hit transportation fuel from travel restrictions. Lockdowns recently called in France, Germany and England will likely take a toll on European gasoil demand, Platts reported today in a separate note.
Light distillates are up 11 percent this year and heavy distillates are down 5.8 percent, leaving the total inventories up 9 percent for 2020 so far. Total stockpiles on 26th October were only 18.465 million barrels, the lowest since September 2019.
Volatility in marine bunker prices led to more buying interest from shipowners, Platts reported, adding that Fujairah-delivered marine fuel with 0.5 percent sulfur was at $325/mt on Nov. 3, $8/mt lower than in Singapore.
Source: Emirates News Agency