Oil products stocks in Fujairah rose 8.2% week on week, rebounding from a five-month low as inventories of light, middle and heavy distillates all increased.
Total oil stocks stood at 17.484 million barrels in the week ending Monday, September 2, up 1.328 million barrels from a week earlier, according to the Fujairah Energy Data Committee.The biggest increase came from middle distillates stocks, which jumped by 15.8% to hit 4.09 million barrels, the highest level in more than a year.
Traders in the region described the gasoil market as balanced, and pegged 10 ppm sulfur gasoil at just under $1/b. The Middle East jet fuel spot market was better supported, however, due to increased regional buying interest, and continued flows to Northwest Europe, S&P Global Platts Analytics said in a report Wednesday. One source from a Middle East refiner also noted that the arbitrage window to the West of Suez had reopened last week due to a weaker prompt Exchange of Futures for Swaps (EFS) spread. The EFS was assessed at a seven-week low of minus $8.24/b Tuesday which indicated improved arbitrage economics, Platts Analytics said.
Stocks of light distillates rose 12.6% to 5.885 million barrels – a six-week high. The petrol market saw a boost in activity on the back of fresh tenders from Indonesia and Kuwait, where state-owned KPC sought 25,000 mt of RON 91 and 25,000 mt of RON 95 gasoline via tender.
'Currently the market is pretty tight, starting from the [Middle East] there are refinery issues so they are pulling a lot barrels from the East, and China exports are at a low,' a trader said, adding that Medium Range and Long Range tankers were being chartered to move cargoes to the Arab Gulf.
Meanwhile, stocks of heavy distillates and residues edged up by 1.5% to 7.509 million barrels. In Fujairah, tight cargo supply continued to keep bunker premiums at elevated levels. Delivered 380 CST bunker prices in Fujairah were assessed at $14.50/mt above Singapore Tuesday - the widest premium in four months - while delivered premiums over ex-wharf bunkers were at $20/mt.
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