Fujairah oil product stocks slip another 2.5%

Total oil stocks were 17.665 million barrels, down 449,000 barrels from a week earlier

Oil product stocks at the Middle East’s key oil hub of Fujairah slipped another 2.5 per cent in the week to Monday, hitting a new 10week low, despite a jump in middle distillate inventories.

Total oil stocks were 17.665 million barrels, down 449,000 barrels from a week earlier, according to the Fujairah Energy Data Committee. Stocks of middle distillates jumped 20 per cent to 3.521 million barrels, highest since August 2017.

Middle distillates appear to be gaining momentum as the crack for Singapore gasoil against Dubai rose to a 12-week high of over $16 per barrel, S&P Global Platts Analytics said Wednesday.

Indian gasoil exports remain strong, but should decline in the fourth quarter as the end of the rainy season leads to an upturn in domestic Platts Analytics said.

At the same time, stocks of heavy distillates and residues fell 10.2 per cent to 9.293 million barrels. Fujairah continues to see healthy bunker demand, with suppliers citing steady buying inquiries in recent days.

Delivered 380 CST bunker demand, prices in Fujairah have averaged US$8.40/mt below Singapore so far this month. Meanwhile, utility demand for fuel oil in the Middle East has shown signs of tapering off as summer draws to a close. Kuwait Petroleum Corp. recently issued a sell tender and Pakistan State Oil has reduced its HSFO requirements for September. But Saudi demand is reportedly still pulling in European cargoes, Platts Analytics said. Light distillate stocks totalled 4.851 million barrels, edging up 0.4 per cent from the year’s lowest total last week. Gasoline sentiment appears to be diverging somewhat in the east of Suez. Premiums for Arab Gulf RON 95 gasoline were down to a seven-week low of US$3.50 per barrel.