FUJAIRAH, (Pakistan Point News - 08th Jul, 2020) Stockpiles of light, middle and heavy distillates at the oil trading and bunkering hub of Fujairah declined to a two-month low July 6th, extending declines from the record set in early June amid signs of improved demand for transportation fuels as nations ease travel restrictions.
Total inventory stood at 27.361 million barrels as of 6th July, down 4 percent week on week, the Fujairah Oil Industry Zone, FOIZ, said today.
Stockpiles are now the lowest since 4th May and down 11 percent since the record 30.71 million barrels on 1st June, according to the inventory data, compiled and published by S&P Global Platts since January 2017.
Light distillates such as gasoline, naphtha and other light petrochemical feedstocks slipped percent week on week to 7.239 million barrels in the week to 6th July, the lowest since 4th May.
Middle distillates such as jet fuel, kerosene and marine gasoil dropped 6 percent to 3.857 million barrels, the third consecutive weekly decline and the lowest since 20th April.
Heavy distillates and residues used in marine bunkers and for power generation fell 1 percent to 16.265 million barrels, the lowest since 1st June.
The gasoline market is getting a boost from Pakistan, which has stepped up buying since the end of May due to low refinery run rates and a sharp recovery in demand, Platts said in a separate report today. Pakistan is known to buy gasoline from Fujairah.
Demand for jet fuel is getting a boost as Hungary's Wizz Air launched its first flight to Abu Dhabi International Airport on 1st July. Dubai, the hub for Emirates Airline, welcomed tourists on 7th July for the first time since most passenger flights were suspended in late March.
Production of gasoil in the East of Suez market has dropped with end-user demand largely met for the month, according to the Platts report.
Demand for bunker fuel in Fujairah has picked up as prices have climbed in line with crude oil, according to the report. Delivered bunker prices for marine fuel maximum 0.5 percent sulphur in Fujairah was assessed by Platts at US$322/mt on 7th July 7, up from $310/mt a week earlier.
