Oil products inventories at the UAE’s Port of Fujairah rose 4.9% in the week ended Jan. 13, led by increases in middle distillates such as jet fuel, gasoil and diesel, according to Fujairah Oil Industry Zone data published Jan. 15.
The total increased to 18.469 million barrels, a three-week high, and the second consecutive weekly increase, according to FOIZ data compiled by S&P Global Commodity Insights since 2017. Middle distillates jumped 34% to 2.882 million barrels, a two-month high.
Light distillates such as gasoline and naphtha gained 8.1% to 7.065 million barrels, the highest since August. Heavy distillates used as fuel for power generation and shipping dropped 4.5% to 8.522 million barrels, a two-week low.
According to Kpler data, fuel oil exports jumped almost threefold in the week starting Jan. 6 to 1.67 million barrels from 644,000 barrels in the prior week, while middle distillates shipments more than tripled to 743,000 barrels from 261,000 barrels over the same period.
Kenya was the sole destination country for the middle distillates shipments, entirely made up of gasoil. Light distillate exports slowed for the third consecutive week, the data showed.
In shipping, demand over the past week was “brisk” for high sulfur fuel oil and “moderate” for low sulfur fuel oil, traders said. The HSFO market is facing more competition from the Khor Fakkan port in the nearby Sharjah emirate, pushing prices lower.
“We have been demand decent HSFO demand last week and so far this week too,” a Fujairah-based trader said.
The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo fell to $13.69/mt on Jan. 14, the lowest since Jan. 24, 2024, Commodity Insights data showed. Fujairah’s HSFO bunker premiums averaged $17.67/mt this month through Jan. 14, down from $22.07/mt for all of December.
On LSFO, the Platts-assessed Fujairah-delivered marine fuel 0.5% sulfur bunker premium over benchmark FOB Singapore marine fuel 0.5%S cargo averaged $7.57/mt this month through Jan. 14, down from $9.07/mt in December, Commodity Insights data showed.
Source: Platts