FUJAIRAH DATA: Oil product stockpiles climb to five-week high, led by light distillates

Oil product stockpiles at the UAE's Fujairah rose 23% in the week to October 26, driven by a 49% jump in light distillates like gasoline and naphtha, according to data released by the Fujairah Oil Industry Zone on October 28. The overall inventory reached 8.914 million barrels, the highest level in five weeks. However, stocks remain 57% below the February 23 level, just before the Middle East conflict commenced.

Light distillates surged to 1.942 million barrels, marking the third consecutive weekly increase after hitting a record low of 559,000 barrels on October 5. Heavy distillates, used for ship fuel and power generation, increased by 28% to 4.717 million barrels, marking a three-week high. Middle distillates, comprising jet fuel and diesel, remained largely unchanged at 2.255 million barrels, after a peak of 2.774 million barrels on October 12.

The backwardation structure in fuel oil markets spurred selling, and ex-wharf cargo costs are deemed high due to limited resupply options, according to a trader. The premium for marine fuel delivered in Fujairah, at 0.5%, trailed the benchmark Singapore Marine Fuel 0.5% by 24% to $85.43 per metric ton in the week to October 27, the lowest level in seven weeks, data from Platts, a division of S&P Global Energy, indicated.

The premium for 380 CST High-Sulfur Fuel Oil in Fujairah over the Platts 380 CST 3.5% FOB Arab Gulf fuel oil cargo assessment dropped 7.5% over the same period to $118.58 per metric ton, the lowest since September 1, as per Platts data.