FUJAIRAH, (Pakistan Point News - 02nd Oct, 2019) Refined oil product stocks at the Middle Eastern hub of Fujairah climbed 7.1 per cent in the week to Monday, led by gains in heavy distillates and residues amid expectations of increased shipper demand for low sulphur fuel oil, according to data released Wednesday by the Fujairah Oil Industry Zone, FOIZ.
Total stocks on 30th September stood at 20.11 million barrels, a seven-week high. Heavy distillates and residues, including fuel oils used for marine bunkers and power generation, climbed 10 per cent to 11.362 million barrels, a two-week high. Commercial onshore residue stocks in Singapore also rebounded week on week over 19th – 25th September after three straight weeks of declines, according to the latest data released last week by Enterprise Singapore.
Market participants have been increasingly storing more low sulphur fuel oil amid expectations of growing demand for the grade, especially in the fourth quarter, S&P Global Platts reported in a separate report. The International Maritime Organisation will cap sulphur content in marine fuels at 0.5 per cent from 1st January 2020, down from 3.5 per cent now. Shipowners will have to either burn cleaner, more expensive fuels or install scrubbers if they continue to burn high sulphur fuel oil, to comply with the rule.
Platts assessed Singapore-delivered 380 CST bunker fuel at US $ 400/mt on Tuesday, while Fujairah-delivered 380 CST bunker fuel was assessed at US $ 380.80/mt.
Inventories of light distillates including gasoline rose 8 per cent to 6.588 million barrels during the period, a six-week high.
Meanwhile, middle distillates, such as gasoil, diesel, marine gasoil, jet fuel and kerosene, dropped 7 per cent to 2.16 million barrels, a two-week low.
S&P Global Platts is the official publisher of the FOIZ oil product data. Fujairah has the Middle East's largest commercial storage capacity for refined products.
