Fujairah oil product stocks slide

Total oil product stocks in Fujairah were 15.978 million barrels as of Monday, down 4.7 per cent on the week, after heavy distillates fell to a new record low, according to latest data from the Fujairah Energy Data Committee (FEDCom).

Stocks of heavy distillates and residues tumbled 20.1 per cent to a new record low of 4.84 million barrels. Traders in Fujairah said bunker demand was currently poor, with an absence of bids and offers during the Platts Fujairah MOC process in recent days, S&P Global Platts Analytics said in a report.

“The market is quite slow,” a Fujairah-based trader said. Another said, “Demand is low and discussions are quiet now.” The premium for ex-wharf 380 CST bunker over cargoes fell to a six-week low of $5.84/mt on Tuesday, the report said.

On the other hand, stocks of light distillates rose 2.7 per cent on the week to 8.426 million barrels. Stock levels so far this year have averaged 34 per cent higher than a year ago. In the Middle East, gasoline market sentiment remained relatively unchanged due to tepid demand and ample supplies from the Mediterranean, the report said.

“The Arab Gulf is pretty much sufficient at the moment, with not much activity going on,” a market source based in London said.
Stocks of middle distillates rose 8 per cent or 201,000 barrels to 2.712 million barrels. In the Arabian Gulf, demand was stable while supply was capped by scheduled maintenance at refineries, a source said.

The cold weather front hitting parts of northern Europe could begin to draw some additional barrels towards the west, although a gas oil EFS value of minus $4.32/mt on Tuesday remains unfavourable for arbitrage. In spot supply, Kuwait’s KPC has sold 40,000 mt of 500 ppm gas oil for March 10-11 at a premium of 40 cents/b to the Mean of Platts Arab Gulf FOB Gasoil assessments.
Source: Gulf News