Oil products inventories at the UAE’s Port of Fujairah fell 11% in the week ended March 24, with all product categories showing declines, according to Fujairah Oil Industry Zone data published March 26.
The total dropped to 19.383 million barrels from an 11-month high a week earlier. Heavy distillates used as fuel for power generation and shipping declined 5.4% to 10.44 million barrels, a two-week low. Middle distillates such as jet fuel and diesel tumbled 22% to 1.995 million barrels, the lowest in six weeks. Light distillates including gasoline and naphtha fell 14% to 6.948 million barrels, also a two-week low.
Fuel oil exports have picked up this month averaging, 387,000 b/d compared with 277,000 b/d in February and the highest since August 2024, according to Kpler data. Singapore and South Korea were the top destinations.
Light distillate outflows have been stable, at 250,000 b/d in March, compared with 246,000 in February. Japan and Taiwan were the top destinations.
Middle distillate outflows averaged the highest since July 2024, at 74,000 b/d in March compared with 65,200 b/d in February, the Kpler data showed. Shipments in March were split between South Africa and Kenya.
Refined product imports were also up for the month, averaging 835,000 b/d in March compared with 783,000 b/d in February, according to Kpler. India and Iraq were the top origin countries.
HSFO demand picks up
In shipping, demand has picked up for high sulfur fuel oil and sellers are eager to move product before new supplies come in, traders said.
“HSFO demand was good in [the] last couple of days… Still [there is] the usual competition and immense oversupply there,” a Fujairah-based trader said.
Platts, part of S&P Global Commodity Insights, assessed the Fujairah-delivered 380 CST HSFO bunker premium to the 380 CST 3.5%S FOB Arab Gulf fuel oil cargoes at an average of $22.48/mt so far in March, higher than the $21.09/mt in February.
Demand for low sulfur fuel oil may pick up as Fujairah LSFO trades at a discount to Singapore fuel, traders said. On March 25, the discount was $4/mt, according to Platts data. However, Kuwait’s Al-Zour refinery shipped 1 million barrels of VLSFO to Fujairah on March 20, Kpler data showed. That will keep the market well supplied, possibly pushing prices down, traders said.
As of now, demand has not improved in recent weeks, traders said. Sellers have yet to fully commit to shipments via barge for the rest of March, with deliveries taking four to five days, they said.
The Platts-assessed Fujairah-delivered LSFO marine fuel premium over the FOB Singapore cargo values averaged $9.51/mt in March, up from $7.11/mt in February.
Source: Platts