Oil product inventories at the UAE’s Port of Fujairah dropped 5.9% in the week ended April 28, with jet fuel, diesel, and other middle distillates down 13%, according to Fujairah Oil Industry Zone data published April 30.
The total fell to 20.721 million barrels, the lowest since March 24. Middle distillates fell to 2.168 million barrels, and light distillates such as gasoline and naphtha declined 12% to 7.815 million barrels, both also at one-month lows.
Heavy distillates used as fuel for power generation and shipping rose 1.1% to 10.738 million barrels after dropping 20% in the previous two weeks.
Refined product exports from Fujairah are averaging 442,000 b/d this month, the lowest since January, according to Kpler. Saudi Arabia is the top destination for April at 86,900 b/d, with 75,600 b/d of it fuel oil and high-sulfur fuel oil.
Fuel oil imports alone into Saudi Arabia from Fujairah are heading for a monthly record of 66,900 b/d in April, the data showed. Some 40,800 b/d of fuel oils are heading for Saudi Electricity.
Hot summer weather has come early to many parts of the Middle East, pushing up demand for power generation for air conditioning.
The Platts-assessed 0.5% sulfur fuel oil delivered to Fujairah has held gains since this year’s low of $/mt on April 9, closing at $/mt on April 29. The Platts-assessed HSFO delivered to Fujairah was at $/mt on April 29, up from this year’s low of $/mt on April 9.
Source: Platts
