Oil products stockpiles at the UAE’s east coast Fujairah port climbed to a four-week high, with all categories showing gains for the first time in eight weeks and demand for bunker fuel slowing.
Total inventory stood at 23.282 million barrels as of February 1st, up 7 percent from a wee
The 33 percent increase over two weeks puts middle distillates at a six-week high.
Heavy distillates inventories, including marine bunkers and fuel used in power generation, stood at 10.78 million barrels on February 1st, up 8 percent from a week earlier and the highest in two weeks.
Fujairah-delivered marine fuel with 0.5 percent sulfur bunker was $461/mt on February 2nd, $6/mt lower than in Singapore, the world’s largest bunkering hub, according to Platts assessments. Fujairah demand has “dialed down a fair measure from February 1st,” Platts reported in its daily Bunkerwire for February 2nd.
Fujairah marine fuel sales have been hurt due to mainly oil tankers, instead of container ships or cruise lines, calling at Fujairah as well as OPEC+ production cuts, according to Cem Saral, CEO of bunker reseller Cockett Marine Oil.
OPEC, Russia and several other key oil producing countries have cooperated on a series of output cuts for more than four years to boost prices, including an unprecedented 9.7 million b/d cuts in mid-2020 during the depths of the pandemic.
Those cuts are now being tapered gradually, though Saudi Arabia has announced a unilateral additional 1 million b/d cut for February and March to shore up the market as infection numbers have soared this winter.
Light distillates stockpiles, including gasoline and naphtha, stood at 7.331 million barrels as of February 1st, up 1 percent from a week earlier and representing a three-week high.