(Pakistan Point News - 19th Dec, 2019) FUJAIRAH, 18th December, 2019 (WAM / S & P Platts) Refined oil product stocks at the Middle Eastern hub of Fujairah fell 2.7% in the week to December 16, after a sharp draw in heavy distillate stocks, according to data released Wednesday by the Fujairah Oil Industry Zone.
As of Monday, total oil product stocks in Fujairah were 20.76 million barrels, down by 574,000 barrels week on week. Overall product stocks fell by 2.7% with a sharp draw in residue stocks or heavy distillates -- which include fuel oil used as a marine fuel and for power generation -- offsetting builds in light and middle distillates.
Stocks of heavy distillates fell by 8.9%, falling by 1.091 million barrels on the week to stand at 11.174 million barrels, this is the lowest since the end of September, when they were 10.336 million barrels on September 23. Tight logistics have supported the bunker market in Fujairah in recent weeks as switching away from high sulphur material towards IMO2020 compliant lower sulphur fuel continued. Delivered bunkers for marine fuel 0.5% maximum sulphur in Fujairah were assessed at US $625/mt on Tuesday, while high sulphur delivered bunkers in the port were assessed at US $283/mt on Tuesday, reflecting a spread of US $342/mt between the two fuels.
Stocks of light distillates rose by 185,000 barrels reflecting a rise of 3.4% week on week. Total volumes stood at 5.562 million barrels. The East of Suez gasoline market was coming under some pressure from higher flows out of North Asia with higher flows from South Korea and China flowing into Singapore. The FOB Singapore 92 RON gasoline crack against front-month ICE Brent slumped to be assessed at US $4.45/b on Tuesday, a fall of US $2.15/b week on week and the lowest level since July 24 when it was US $4.31/b.
Stocks of middle distillates built by 9%, adding by 332,000 barrels to 4.027 million barrels at the start of the week, this is the first time they have breached 4 million barrels since November 5, 2018 when they stood at 4.058 million barrels.
An increase in spot demand from India for gasoil barrels was supporting the prompt market, market sources said.
The Indian [gasoil] imports [have] basically cleaned up the prompt market," a trader said.
