Oil product stocks at port of Fujairah snap slide as heavy distillates rebound

FUJAIRAH, Oil product stockpiles at the UAE’s east coast port of Fujairah snapped a four-week slide as heavy distillates rebounded, making up for a record string of declines in middle distillates and a drop in light distillates to a six-week low.

Total inventories as of Jan. 18 stood at 22.149 million barrels, up 0.1% from a week earlier and the first gain in five weeks, according to data released on Wednesday from the Fujairah Oil Industry Zone. Heavy distillates used in marine bunkers and for power generation jumped 10% to 11.399 million barrels after falling 11% a week earlier.

Middle distillate stocks tumbled 12% to 3.879 million barrels, the lowest since Oct. 5 and marking a record sixth consecutive weekly decline. Middle distillates covered in the report are gasoil, diesel, marine bunker gasoil, jet fuel and kerosene.

Gasoil/diesel was the biggest middle distillate exported from Fujairah last year, at 83,000 b/d, according to data analytics firm Kpler. In the week started Jan. 11, Fujairah was set to export some 829,000 barrels of gasoil, with Egypt taking 503,000 barrels, its first such shipment since December 2019. An unknown buyer was set to take 326,000 barrels, the Kpler data showed.

More gasoil demand is seen in East of Suez on spring turnarounds at some refineries and demand from South Africa, S&P Global Platts said in a Jan. 20 report.

Light distillates such as gasoline and naphtha dropped 6% to 6.871 million barrels, the lowest since Dec. 7. According to the Kpler data, a shipment of some 527,000 barrels of gasoline was destined for Kenya in the week started Jan. 11, the most since March 2020.

Platts is the exclusive publisher of the Fujairah inventory data, beginning in January 2017.

 

Source: Emirates News Agency

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