Total oil product stocks in Fujairah were 16.595 million barrels as of Monday, April 2, down 5.5% from a week earlier, as all three product categories fell, according to latest data from the Fujairah Energy Data Committee, or FEDCom.
Stocks of middle distillates fell 21.6% to 1.739 million barrels. The gasoil market was stable Monday, with a supply cap on turnarounds in India and the Middle East, according to a report by S&P Global Platts Analytics. Premiums are seeing some support from European demand, with the arbitrage looking more workable, market sources said. The volume of ultra low sulfur diesel shipping from East of Suez markets to the Mediterranean and Northwest Europe is currently expected at between 1.2 million mt and 1.4 million mt, respectively, in April, data from S&P Global Platts trade flow software cFlow and market sources showed.
Demand in diesel markets in Northwest Europe and the Mediterranean has started to pick up following the winter lull. On jet fuel, traders said demand for Asian and Middle Eastern barrels was seen dropping off somewhat as the flow of cargoes from the US to Europe intensifies. Meanwhile, stocks of light distillates fell 4.7% on the week to 7.807 million barrels.
The Middle Eastern market is seeing mixed sentiment, with some sources saying ample supply from Europe and India would continue to depress the market, while others were more optimistic, the report said. Petrol demand has had a slow start to the year in the first quarter, but sentiment is picking up given stable demand from the Middle East which is likely to improve further with stock building ahead of Ramadan, it said. Global demand is expected to see a seasonal pickup ahead of the summer driving season. Premiums for Arab Gulf Gasoline RON 95 rose to a three-week high of $2.60/b Tuesday.
Stocks of heavy distillates and residues were largely stable, falling just 1% on the week to 7.049 million barrels. Bunker market sentiment in Fujairah was reported as improving with some traders noting better inquiries for April. Kuwait Petroleum Corp. sold via tender 80,000 mt of 380 CST HSFO, with maximum 4.0% sulfur, for April 10-11 loading to Vitol at a low single digit premium to Mean of Platts Arab Gulf 380 CST HSFO assessments, on an FOB basis, traders said.
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