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

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

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

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

Total oil product stocks in Fujairah were 16.712 million barrels as of Monday, up 4.6% on the week, after heavy distillates rebounded from last week's record lows, according to latest data from the Fujairah Energy Data Committee, or FEDCom.

Stocks of heavy distillates and residues jumped 34.3% on the week to 6.5 million barrels. This is after stocks tumbled a week earlier to a record low of 4.84 million barrels, S&P Global Platts Analytics said in a report. Bunker demand in Fujairah was reported as firmer, with market sources noting that inquiries and trade volumes have picked up in recent days. Fuel oil cargoes moving from the Middle East to Asia in March are estimated at 2 million mt, down from volumes of around 2.5 million mt in January and February, sources said.

Lower arbitrage volumes are consistent with the narrower spread between Singapore and Fujairah cargo prices since around mid-February. Meanwhile, stocks of light distillates fell 9.3% to 7.642 million barrels, the data showed. The Middle East gasoline market showed some improvement, with both time spreads and cash premiums seeing some improvement on the week, the report said. Spring refinery maintenance is expected to tighten global supply balances, although weakness in the US gasoline complex continues to weigh on sentiment, it added.

Stocks of middle distillates also fell 5.2% to 2.571 million barrels, staying rangebound on refinery maintenance in the Middle East and tepid demand fundamentals in Asia and Europe. Premiums for FOB Arab Gulf gasoil 500 ppm were at a 12-month low Tuesday.

Middle East jet export barrels remain well supported by demand from Asia, East Africa, and Europe. The Singapore market has recently seen heavy buying drive prompt jet fuel cash differentials to a 10-year high, but demand is expected to wane during the April-May shoulder season. Demand for jet kerosene stocks in the Gulf remained consistent, with the Emirates General Petroleum Corp. heard seeking 50,000 mt of jet A-1 fuel for mid-April delivery to Jebel Ali.

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

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