Fujairah Weekly Oil Inventory Data Stocks Level as of October 22, 2018

Total oil product stocks in Fujairah stood at 21.612 million barrels

Chart Attribute: Fujairah Weekly Oil Inventory Data (as of October 22, 2018) / Source: The Gulf Intelligence

As of Monday, October 22 total oil product stocks in Fujairah stood at 21.612 million barrels – up by 5.8% week on week. Combined product stocks are at their highest since August 14, 2017.

Stocks of light distillates rose by 8.8% week on week to 8.886 million barrels – a record high since the start of weekly inventory reporting in January 2017. Gasoline market sentiment remains weak due to continued movement of European gasoline into the East of Suez. "The balance is coming from outside ... people are bringing in cargoes from the Mediterranean," a source based in the Middle East said. Demand remains present, with Kuwait’s KPC and Pakistan's PSO issuing fresh buy tenders this past week, but this is outweighed by heavy supply fundamentals. "On the whole, sentiment in the gasoline market is bearish. Although the demand side seems stable, the supply side does not look good with arbitrage cargoes [from the West] coming in and adding on to the high inventories [in Asia]," a Singapore-based trader said.

Stocks of middle distillates were almost unchanged week on week at 4.353 million barrels. Inventories remain at their highest since March 27, 2017. Gasoil continues to see building positive sentiment, based mainly on the strength of Asian demand. Asian gasoil supply has been constrained by refinery maintenance, even as North Asian bunker, barge, and fishing sector requirements and Australian mining industry demand remained robust. Asian demand has drawn in gasoil volumes from the Middle East and India, largely offsetting a lack of arbitrage flows to the West.

Stocks of heavy distillates and residues rose by 5.8% week on week to 8.373 million barrels – a nine-week high. Bunker demand in Fujairah is expected to pick up as flat prices have declined in line with crude. Brent futures fell by 4% overnight to an eight-week low of $76.44/b yesterday. "With prices moving down so much today, demand for bunkers increased, with more buyers coming out to purchase," one bunker supplier said. In addition to improved demand, some supply tightness was seen due to the snapback of US sanctions on Iran, which is traditionally the key supplier of fuel oil to Fujairah.

Chart Attribute: Fujairah Weekly Oil Inventory Data (Jan 9, 2017 - October 22, 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.