Fujairah Weekly Oil Inventory Data Stocks Level as of Jan. 15, 2018

Fujairah Weekly Oil Inventory Data Stocks Level as of Jan. 15, 2018

Chart Attribute: Fujairah Weekly Oil Inventory Data (as of January 15, 2018) / Source: The Gulf Intelligence

Chart Attribute: Fujairah Weekly Oil Inventory Data (as of January 15, 2018) / Source: The Gulf Intelligence

Stocks of light distillates fell by 5.1% to 5.948 million barrels, retreating from a 20-week high seen last week. The front-month time spread for Arab Gulf gasoline RON 95 fell further into contango and was at minus 53 cents yesterday, indicative of seasonally lower gasoline demand. Naphtha cracks have fallen sharply recently as Asian petrochemical producers expect to see the end of peak run rates for the upcoming Lunar New Year, adding further downward pressure on the light distillates complex. Arbitrage routes out of Asia are heard to be closed with the Middle East and the US West Coast already being sufficiently stocked. One source commented, "the (Middle East) market is a bit long, but in the coming months ... it will be balanced with all the tenders and the turnarounds”.

Stocks of middle distillates rose by 5.5% or 113,000 barrels to a nine-week high of 2.183 million barrels.  The price impact on gasoil of cold weather in Europe and North America has moderated, with markets in those regions seen as flat at best. Four LR2-sized vessels each carrying around 90,000 mt of gasoil that loaded from East of Suez locations are currently en route to the US East Coast, but this arbitrage has now closed in line with a falling spread between the NYMEX heating oil and ICE low sulfur gasoil futures.

Stocks of heavy distillates and residues fell by 6% or 545,000 barrels to 8.529 million barrels. Bunker demand in Fujairah was reported as sluggish in recent days, with the rally of ICE Brent prices to $70/b raising prices and dampening buying interest. The front-month time spread for Arab Gulf 180 CST remained in contango at minus 75 cents/mt yesterday. Added to the suspension of fuel oil tenders by Pakistan State Oil and a narrowing differential between Singapore and Fujairah cargo prices, fuel oil stocks could well rebound in the coming weeks.

Chart Attribute: Fujairah Weekly Oil Inventory Data (Jan 9, 2017 - Jan 15, 2018) / Source: The Gulf Intelligence

Chart Attribute: Fujairah Weekly Oil Inventory Data (Jan 9, 2017 - Jan 15, 2018) / Source: The Gulf Intelligence

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 by 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.

 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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