Fujairah Weekly Oil Inventory Data Stocks Level as of August 13, 2018

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Fujairah Weekly Oil Inventory Data Stocks Level as of August 13, 2018

Chart Attribute: Fujairah Weekly Oil Inventory Data (as of August 13, 2018) / Source: The Gulf Intelligence

Chart Attribute: Fujairah Weekly Oil Inventory Data (as of August 13, 2018) / Source: The Gulf Intelligence

Oil product stocks at the Middle East's key oil hub of Fujairah slipped another 2.5% in the week to Monday, hitting a new 10-week low, despite a jump in middle distillate inventories.

Total oil stocks were 17,665 million barrels, down 449,000 barrels from a week earlier, according to the Fujairah Energy Data Committee.

Stocks of middle distillates jumped 20% to 3.521 million barrels, the highest since last August.

Middle distillates appear to be gaining momentum as the crack for Singapore gasoil against Dubai rose to a 12-week high of over $16/b, S&P Global Platts Analytics said Wednesday.

Indian gasoil exports remain strong, but should decline in the fourth quarter as the end of the rainy season leads to an upturn in domestic demand, Platts Analytics said.

At the same time, stocks of heavy distillates and residues fell 10.2% to 9.293 million barrels. Fujairah continues to see healthy bunker demand, with suppliers citing steady buying inquiries in recent days.

Delivered 380 CST bunker prices in Fujairah have averaged $8.40/mt below Singapore so far this month. Meanwhile, utility demand for fuel oil in the Middle East has shown signs of tapering off as summer draws to a close. Kuwait Petroleum Corp. recently issued a sell tender and Pakistan State Oil has reduced its HSFO requirements for September.

But Saudi demand is reportedly still pulling in European cargoes, Platts Analytics said.

Light distillate stocks totaled 4.851 million barrels, edging up 0.4% from the year's lowest total last week.

Gasoline sentiment appears to be diverging somewhat in the east of Suez. Premiums for Arab Gulf RON 95 gasoline were down to a seven-week low of $3.50/b, although there should be continued support from regional demand. State-owned Egyptian General Petroleum Corp. and KPC were both seeking September gasoline cargoes.

By contrast, Singapore premiums have climbed in recent days, boosted by Indonesia's buying for September. Indonesia is expected to import some 11 million barrels of gasoline in September, up 1 million barrels on the month.

S&P Global Platts holds exclusive rights to publish Fujairah oil inventory data and has deployed a blockchain network for its collation.

Chart Attribute: Fujairah Weekly Oil Inventory Data (January 9, 2017 - August 13, 2018) / Source: The Gulf Intelligence

Chart Attribute: Fujairah Weekly Oil Inventory Data (January 9, 2017 - August 13, 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.