Fujairah Oil product stocks down to 15.895 mil barrels

Total refined product stocks at Fujairah stood at 15.895 million barrels in the week to October 30th, down 1.1 percent from the previous week, according to data from the Fujairah Energy Data Committee, FEDCom, Platts have reported.

While in absolute terms the week on week change was relatively small, stocks of light and middle distillates fell to their lowest levels since the start of Fujairah stocks reporting, S&P Global Platts Analytics said in a report.

Consequently, total combined stocks were at a record low, due in part to strong backwardation in most product markets.

Stocks of light distillates fell by 2.5 percent week on week to 4.266 million barrels, the data showed.

The gasoline market is resisting the usual seasonal demand slump in the fourth quarter due to healthy regional demand, according to Platts Analytics.

European barrels, which usually flow to the Middle East, have instead been going to West Africa due to very healthy demand there. In Asia, recent tenders from Indonesia, Vietnam and Sri Lanka have added to regional demand.

Stocks of middle distillates fell by 9.5 percent week-on-week to 2.245 million barrels, the data showed.

Stock levels remained below 3 million barrels for the seventh week in a row, although supply fundamentals could lean towards more supply and higher stocks levels over the next few months, Platts Analytics said.

Additional spot supplies of gasoil have emerged as the bulk of current refinery maintenance in both the Middle East and Asia will soon be completed, it added.

Stocks of heavy distillates and residues rose by 1.8 percent to 9.384 million barrels, but remained below 10 million barrels for a fifth consecutive week.

The first/second month time spread for 180 CST Arab Gulf HSFO swaps rose to a five-week high of $2.80/mt Tuesday, indicating a stronger backwardation, which discourages traders from keeping volumes of oil in storage.

The fourth quarter typically sees a pickup in regional bunker demand, but demand in Fujairah is likely down year-on-year partly because of reduced regional crude exports due to OPEC production cuts, Platts Analytics said.

FEDCom was established by the Fujairah Oil Industry Zone, FOIZ, to collect, verify and distribute inventory data to replicate the data sets provided at other global trading centres such as Singapore and Rotterdam.

Fujairah has about 41.5 million barrels of commercial oil product land storage available for leasing, Platts Analytics estimates.