Jan 05 2023
Oil product stockpiles at the UAE's Port of Fujairah dropped 1.5% in the week ended Jan. 2, after exports for 2022 reached the second-highest on record, according to Fujairah Oil Industry Zone and Kpler data.
Total inventories were at 20.349 million barrels as of Jan. 2, a two-week low, the FOIZ data provided exclusively to S&P Global Commodities Insights on Jan. 4 showed. Product exports averaged 620,000 b/d in 2022, down 2.2% from the record 634,000 b/d set in 2021, according to Kpler data. Singapore was the largest destination for product exports last year, followed by Saudi Arabia. Shipments to the US jumped 30-fold while exports to Poland, Lebanon, Libya and Cyprus were recorded for the first time.
Light distillates including gasoline and naphtha led stockpiles lower, falling 8.6% in the week ended Jan. 2 to 6.827 million barrels, a two-week low. Middle distillates such as jet fuel and diesel rose 1% over the same period to 3.119 million barrels, a three-week high.
Heavy distillates used as fuel for power generation and marine bunkers gained 2.9% to 10.403 million barrels as of Jan. 2, the first increase in three weeks after hitting a six-month low a week earlier.
Bunker demand was subdued over the year-end holidays and strong winds caused some sellers to defer refueling schedules, local bunker suppliers said.
"We were not arranging any new barge loadings [during the week ended Dec. 30]... Exited the market once we have sold out the limited quantities [left for the year] and returned after the holidays," a Fujairah-based bunker supplier said.
Supplies may continue to increase as delivery lead times were down to four to six days as of Jan. 3, from seven to eight days a week earlier, according to market sources.
The Platts Fujairah-delivered marine fuel 0.5%S bunker premium over the benchmark FOB Singapore marine fuel 0.5%S cargo value was at $37.35/mt Jan. 3, down from an average $38.13/mt during the week ended Dec. 30 and $44.01/mt in the week ended Dec. 23, according to S&P Global data.
Still, there is above-average demand for high sulfur fuel oil, traders said.
"There's some demand for HSFO and LSFO. Barges have been quite tight across Fujairah currently," a bunker supplier said.
The Platts Fujairah-delivered 380 CST high sulfur fuel oil bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo assessments was at $48.84/mt Jan. 3, up from an average $42.46/mt in the week ended Dec. 30 and $43.88/mt in the week ended Dec. 23, S&P Global data showed.
Total stockpiles for 2022 jumped 29% for the year, the most on record since FOIZ began providing the data to S&P Global in January 2017.
Light distillates stockpiles led the gains for the year, up 72% followed by a 45% jump for middle distillates and 6.3% increase for heavy distillates.