Fujairah Weekly Oil Inventory Data Stocks Level as of Sept. 11, 2017

Fujairah Weekly Oil Inventory Data Stocks Level as of Sept. 11, 2017

Chart Attribute: Fujairah Weekly Oil Inventory Data (as of Sep 11, 2017) / Source: The Gulf Intelligence

Chart Attribute: Fujairah Weekly Oil Inventory Data (as of Sep 11, 2017) / Source: The Gulf Intelligence

Fujairah's commercial stocks of refined oil products fell 4.2% to 18.983 million barrels in the week to Monday, remaining below 20 million barrels for a third week since large-scale refinery shutdowns in Texas related to Hurricane Harvey sent shock waves through global oil products markets. Light and middle distillate stocks fell a combined 760,000 barrels, or 8.4%, to their lowest levels in around three months, while heavy distillates and residues, which account for more than half the total oil product stocks at the UAE port were almost flat, as they have been since mid-August, data released Wednesday by the Fujairah Energy Data Committee showed.

Stocks of light distillates, predominantly gasoline and naphtha, fell 378,000 barrels, or 6.7%, to 5.302 million barrels -- a 12-week low. That was despite the receding impact of Hurricane Harvey, the aftermath of which resulted early this month in a strong draw of European gasoline across the Atlantic to meet short US shortfalls, consequently also pulling Middle East gasoline stocks west of Suez in the week ended September 4. 

In the meantime, Fujairah's total light distillate stocks are also responding to price movements in Asian petrochemicals markets, which has meant a poor correlation in the past two weeks between their overall level and those of European gasoline stocks. A 

The premium of LPG -- a propane-heavy mix of gas liquids used for cooking, heating and as petrochemical feedstock -- is expected to last for the remainder of this year on winter heating demand.

Chart Attribute: Fujairah Weekly Oil Inventory Data (Jan 9-Sep 11, 2017) / Source: The Gulf Intelligence

Chart Attribute: Fujairah Weekly Oil Inventory Data (Jan 9-Sep 11, 2017) / Source: The Gulf Intelligence

ARBITRAGE WINDOW REOPENS


Fujairah stocks of middle distillates fell a substantial 11.2% on the week -- a 382,000 barrel draw to a 14-week low of 3.02 million barrels. In Europe, gasoil stocks were at relatively low levels due to autumn refinery maintenance in the region coupled with continued shortages of US supplies due to the hurricane-related refinery and port disruptions. This has finally resulted in more Middle East gasoil cargoes moving to Europe in response to European prices reaching levels sufficient to overcome the deterrent of high freight rates.


LITTLE MOVEMENT IN HEAVY STOCKS


Fujairah's stocks of heavy distillates and residues dipped by 73,000 barrels in the week ending September 11, edging down by 0.7% to 10.661 million barrels -- a fourth consecutive week below 11 million barrels. Demand for bunkers in both Fujairah and Singapore has been healthy over the past week. Prices for Fujairah 380 CST delivered bunker fuel, however, slipped further relative to Singapore, with discounts widening to about $5.5/mt from $3.75/mt the previous week.

About the S&P Global Platts and FOIZ Fujairah Data Project:

The government of Fujairah in 2016 announced a plan to publish weekly data on refined products held at onshore commercial terminals at Fujairah as part of its effort to position the Indian Ocean port as a global oil trading and storage. It appointed S&P Global Platts to distribute the weekly inventory data. FEDCom was established by the Fujairah Oil Industry Zone to collect, verify and distribute inventory data to replicate the data sets provided at other global trading centers such as Singapore and Rotterdam.Fujairah has about 41.5 million barrels of commercial oil product land storage available for leasing.

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About The Gulf Intelligence:

Gulf Intelligence is a strategic communications & research firm effective across the full value-chain of the Middle East Energy Sector – we facilitate knowledge exchange and advance the business interests of national and international stakeholders operational in the regional industry. 
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