Oil product stockpiles at the UAE’s Port of Fujairah dropped from a three-month high as of May 30 with declines registered in light distillates and heavy distillates and residues, according to Fujairah Oil Industry Zone data published June 1.
The total inventory was 19.678 million barrels as of May 30, down 0.6% from a week earlier, the port data provided exclusively to S&P Global Commodity Insights showed. Inventories were 3.48% lower than the same time last year.
Light distillates inventories including gasoline and naphtha stood at 6.314 million barrels as of May 30, down 4.3% from a week earlier and the first drop in five weeks.
Some 55,500 barrels of gasoline was destined for Saudi Arabia’s Ras Tanura refinery in the week started May 23, the first gasoline shipment to the country from Fujairah since March 7, according to Kpler data. The Ras Tanura refinery has scheduled maintenance for June, sources told S&P Global, with one source saying one of the Ras Tanura jetties will be worked on for about 10 days starting in mid-June. Saudi Aramco was not immediately available to comment.
Inventories of light distillates were up 23.15% in the past year. Stocks of heavy distillates and residues used as fuels for power generation and marine bunkers stood at 10.838 million barrels as of May 30, down 0.6% from a week earlier and the third drop in four weeks.
An earlier premium between Singapore and Fujairah bunker prices flipped to a discount May 19 when delivered low-sulfur bunker fuel in Fujairah was assessed $3/mt below Singapore at $/mt and continued to rise progressively to $45/mt May 27 on the back of supply constraints in Singapore.
Besides for shipping fuel, heavy distillates are needed at this time of year as Saudi Arabia looks to burn fuel oils for power generation as demand for air conditioning ramps up in summer. Heavy distillates stocks have declined 8.69% from this time last year.
Middle distillates climbed 9.9% over the week ended May 30 to 2.526 million barrels, the highest since Feb. 21, the port data showed. The stockpiles, which include jet fuel and gasoil, are down 25.55% in the past year.
