Stockpiles of oil products at the UAE’s Port of Fujairah rose 2.4% to an eight-month high in the week ended April 1 after a surge in diesel imports from Kuwait, according to the Fujairah Oil Industry Zone and shipping data. Total inventories increased to 20.269 million barrels as of April 1, the highest since June 26, the FOIZ data published April 3 showed. Stockpiles have increased 17% since the end of 2023.
Stocks of middle distillates including diesel and jet fuel soared 61% in the latest week to 3.359 million barrels, also an eight-month high. Imports of refined products from Kuwait climbed to a record 1.9 million barrels – all of it diesel — in the week started March 25, after a two-week lull, according to S&P Global Commodities at Sea data. That pushed imports of refined products except fuel oil up to 3.9 million barrels from 2.8 million barrels a week earlier. Kuwait’s Al-Zour refinery, known as a “diesel machine,” is the Middle East’s biggest refinery with capacity of 615,000 b/d. It reached maximum capacity for the first time in December after commercial operations began in November 2022.
Stockpiles of light distillates such as gasoline and naphtha fell 2.2% in the latest week to 7.564 million barrels, a two-week low. Heavy distillates used as fuel oil for power generation and for shipping dropped 6.3% to 9.346 million barrels, a four-week low. Bunker demand at the port of Fujairah for low sulfur fuel grade has strengthened in recent days after a month of slowing activity, traders said. Some sellers can’t offer product until April 4 at the earliest, they said. The Platts-assessed price of marine fuel 0.5% sulfur was $639/mt on April 1 compared with $640/mt a week earlier, according to S&P Global data. It rose to $645/mt on April 2, the highest since March 19. So far since the end of 2023, stocks of light distillates have climbed 61%, heavy distillates have dropped 7.9% and middle distillates have increased 34%.
Source: spglobal.com