Fujairah Weekly Oil Inventory Data Stocks Level as of Feb 5, 2018

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Fujairah Weekly Oil Inventory Data Stocks Level as of Feb 5, 2018

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

Chart Attribute: Fujairah Weekly Oil Inventory Data (as of February 5, 2018) / Source: The Gulf Intelligence

Total oil product stocks at the UAE port of Fujairah were almost unchanged at 16.825 million barrels as of Monday, edging up just 0.3% on the week, despite a 23.6% drop in middle distillate figures, according to latest data from the Fujairah Energy Data Committee, or FEDCom.

Stocks of light distillates rose by 4.3% week on week to 7.846 million barrels, the second highest total on record. Stocks are currently 1.5 million barrels, or 24%, higher than this time last year. The FOB Arab Gulf gasoline market remains bearish on ample supply and a dearth of cargoes changing hands, S&P Global Platts Analytics said in a report.

Global gasoline supplies have been high due to strong refinery runs through the winter, but the market is expected to tighten as refinery maintenance starts. Therefore, light stock levels could fall from current highs over the next few weeks, the report said. The front-month time spread for Arab Gulf gasoline RON 95 also flipped into backwardation this week, having been in contango since late-December.

Stocks of middle distillates fell by 23.6% or 613,000 barrels to 1.979 million barrels, down from last week's three-month high. The inventories are 62% lower year on year, having been drawn down by healthy demand due to a colder winter in the Northern Hemisphere. Supply will be constrained by current and upcoming refinery maintenance, the report said, with one of the region's major gasoil exporters, Saudi Aramco Total Refining and Petrochemical Co., undergoing a 46-day maintenance outage to its 200,000 b/d train 1 CDU from January 8.

Stocks of heavy distillates and residues rose to 7 million barrels, climbing 5.1% from last week's record low. Heavy stocks have averaged 21% lower year on year so far this year on a flat market structure and a weak outlook for demand.

The bunker market was quiet as buyers stayed on the sidelines given falling crude prices, hoping to pick up material at lower prices. Front-month ICE Brent futures closed at a five-week low of $66.99/b Tuesday, after hitting a three-year high of $70.71/b on January 25.

Chart Attribute: Fujairah Weekly Oil Inventory Data (Jan 9, 2017 - Feb 5, 2018) / Source: The Gulf Intelligence

Chart Attribute: Fujairah Weekly Oil Inventory Data (Jan 9, 2017 - Feb 5, 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 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.

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.