Fujairah oil stocks up 12%

FUJAIRAH, 11th April, 2018 (WAM/Platts) — Total oil product stocks in Fujairah were 18.620 million barrels as of Monday, up 12.2 percent from a week earlier, after a sharp rise in middle distillate numbers, according to latest data from the Fujairah Energy Data Committee, or FEDCom.

Stocks of middle distillates surged 64.2 percent on the week to 2.855 million barrels. Bullish sentiment in the Asian jet fuel market intensified, supported by supply tightness for prompt barrels as a result of ongoing refinery turnarounds in Asia and the Middle East, S&P Global Platts Analytics said in a report.

In addition, still-workable arbitrage economics coupled with declining voyage rates pushed jet fuel barrels from the Gulf and India to Europe, as well as from South Korea to the US west coast. This further exacerbated the tight supply, the report said.

Demand for jet barrels in the Arab Gulf was seen as strong. Fundamentals in the Asian gasoil market were stable and unchanged, with softer demand for ULSD and higher freight rates making it uneconomic to ship cargoes to the west of Suez, despite heightened post-winter demand in Europe.

Stocks of heavy distillates and residues also rebounded by 20 percent to 8.456 million barrels. Buying sentiment in the Fujairah bunker fuel markets was strong at the start of the week, but retreated on a rise in outright prices. Some sellers reported steady levels of inquiries, but said bids were relatively unattractive for deals. Fujairah-delivered 380 CST bunker fuel was assessed at US$393.25/mt on Tuesday, up by US$6.25/mt from Monday.

Stocks of light distillates fell by 6.4 percent week-on-week to 7.309 million barrels. Fundamentals in the Asian gasoline market seemed to be weakening on excess supplies and tepid demand within the region, with no increase in spot demand seen lately, Platts Analytics said.

In a potential blow to refiners in India and East Asia, Iran’s oil minister Bijan Zanganeh announced this week that his country will cease imports of gasoline by the fourth quarter of the year given the near-completion of Phase II of the Gulf Star refinery.

Source: Emirates News Agency