FUJAIRAH DATA: Heavy residues stocks jump as exports fall

Stockpiles of oil products at the UAE’s Port of Fujairah increased but remained low in the week to July 24, with gains in heavy residues and light distillates stocks offsetting falls in middle distillates, according to data from the Fujairah Oil Industry Zone.
Total inventories stood at 18.77 million barrels as of July 24, up by 11.4% from a 15-month low seen in the prior week, the FOIZ data provided exclusively to S&P Global Commodity Insights showed.
However, this was still the second lowest reading since Feb. 13.

Refined products exports from Fujairah averaged 587,900 b/d in the week to July 24, down from 643,100 b/d in the previous week, according to S&P Global Commodities at Sea data. Exports of fuel oil, used for power generation and shipping, fell to 94,120 b/d from 368,730 b/d.

Lower exports came as FOIZ figures showed that stocks of heavy distillates, including fuel oil, gained 23.9% on the week to 9.72 million barrels July 24. This was still much lower than 12.8 million barrels a year ago.

In the July 25 trading session, bunker supplies in Fujairah showed that trading activity had markedly slowed down.

Available barge slots in the world’s third largest refueling hub appeared to have been pushed out considerably, with most suppliers able to deliver from July 30 onward.

Stocks of light distillates such as gasoline and naphtha gained 1.1% to 6.23 million barrels, still lower than the quarter-to-date average of 6.92 million barrels, FOIZ figures showed.

The East of Suez gasoline complex has recently strengthened, tracking gains in the US RBOB-Brent crack on the back of an unscheduled refinery turnaround, sources said.

Stocks of middle distillates — including gasoil and jet fuel — fell 0.7% to 2.81 million barrels as of July 24, the lowest since April 10, according to the FOIZ.

Asia’s jet fuel market has been supported by recovering aviation demand, with traders saying that Pakistan State Oil has issued a tender seeking jet A-1 fuel for delivery in September.
Source: Platts

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