Stockpiles of oil products at the UAE’s Port of Fujairah fell 1.3% in the week ended March 25 from an eight-month high a week earlier with exports showing signs of a pickup this month, according to the Fujairah Oil Industry Zone and shipping data.
Total inventories dropped to 19.785 million barrels as of March 25 from 20.0049 million barrels a week earlier, the highest since July 10, the FOIZ data published March 27 showed. Stockpiles have increased 14% since the end of 2023.
Stocks of heavy distillates used as fuel oil for power generation and for shipping dropped 6.3% on the week to 9.971 million barrels, a two-week low. Light distillates such as gasoline and naphtha increased 2.7% to 7.733 million barrels, a three-week high. Middle distillates including jet fuel and diesel jumped 11% to 2.081 million barrels, a one-month high. So far since the end of 2023, stocks of light distillates have climbed 65% while heavy distillates have dropped 1.7% and middle distillates have declined 17%.
Exports of products except for fuel oil averaged 642,000 b/d this month, the most since November 2020, and up from 375,000 b/d in February, according to S&P Global Commodities at Sea data. South Korea is the leading destination for the month at 122,000 b/d, the highest on record since 2016. Most of the shipments are categorized as clean products, along with naphtha. Imports of refined products except for fuel oil from Iraq and Kuwait have doubled this month, the data showed.
As for fuel oil, shipments are averaging 64,000 b/d in March, down from 85,000 b/d in February and the lowest since 2017.
Ship fuel demand has been sufficiently strong to support higher prices, partly as more ships call at Fujairah for refueling before taking longer routes around Africa to avoid the Red Sea, traders said. Recent weather-related disruptions have eased, with barging schedules returning to normal.
“Operations are smooth,” a Fujairah-based bunker trader said.
The Platts Fujairah-delivered marine fuel 0.5% sulfur bunker premium over benchmark FOB Singapore marine fuel 0.5%S cargo values was $16.68/mt March 26, up $3.28/mt from a week earlier, S&P Global data showed.
The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo increased $6.45/mt over the same period to $25.08/mt March 26.
Source: Platts
