Oil products inventories at the UAE’s Port of Fujairah dropped 5.5% in the week ended July 14, with declines led by gasoline, naphtha and other light distillates, according to Fujairah Oil Industry Zone data published July 16.
The total fell to 19.554 million barrels from a two-month high a week earlier, snapping the longest stretch of gains on record since the port began sharing the data with Platts in 2017. Total inventories are up 26% since the end of 2024.
Light distillates declined 9.1% to 7.388 million barrels, a three-week low, while heavy distillates used as fuel oils for power generation and shipping slipped 6.7% to 9.573 million barrels, the lowest in two weeks. Middle distillates such as jet fuel and diesel climbed 12% over the same period to 2.593 million barrels, a two-week high.
Refined products exports from Fujairah are averaging 961,000 b/d this month, the most since at least October 2016 and up from 641,000 b/d in June, according to S&P Global Commodities at Sea(opens in a new tab).
Fuel oil shipments from Fujairah are averaging 525,000 b/d this month, also a record high and up from 312,000 b/d in June, the data show. More supplies are available as June ship fuel sales dropped to a four-month low in June, the port reported July 15.
Exports of fuel oil to Iraq from Fujairah are averaging 44,000 b/d in July, also an all-time high. On July 1, Iraq’s electricity ministry stated Iran had cut its natural gas exports to Iraq, forcing multiple Iraqi gas-fed power plants to shut as temperatures soared in the summer heat.
Diesel shipments from Fujairah average 132,000 b/d for July, well ahead of 30,000 b/d in June, while naphtha exports climbed to 87,000 b/d from 70,000 b/d over the same period.
The Platts-assessed 0.5% sulfur fuel oil delivered to Fujairah was at $509/mt on July 15, down from a recent high of $555/mt on June 19, according to S&P Global Commodity Insights data. High-sulfur fuel oil delivered to Fujairah was at $393/mt on July 15, down from a recent high of $465/mt on June 19.
Bunker suppliers were mostly keen to draw down their largely adequate LSFO inventories and sell competitively, especially amid choppy demand flows in downstream markets over the past recent trading weeks.
Moreover, suppliers were also pressured to turn their LSFO and HSFO barges owing to the ample prompt slots for early refueling dates, despite the lackluster margins, as ex-wharf procurements costs for both grades remained stable to slightly higher for July’s cargo valuations.
The Platts-assessed Fujairah-delivered marine fuel 0.5% sulfur bunker premium over the benchmark FOB Singapore marine fuel 0.5%S cargo averaged $4.59/mt in June, down from $6.42/mt in May, and continued to decline to $4.03/mt so far in July.
Some HSFO import demand from Egypt to meet the peak summer demand for power generation also slightly expedited stock drawdowns around the Fujairah hub, and lifted valuations of the ex-wharf and delivered bunker grade in recent weeks.
The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf averaged just $3.72/mt in June, nearly four times lower than the $14.35/mt recorded in May, according to Platts data, and rebounded to $14.06/mt over July 1-15.
Source: Platts