Total oil product stocks in Fujairah were 15.978 million barrels as of Monday, February 26, down 4.7% on the week, after heavy distillates fell to a new record low, according to latest data from the Fujairah Energy Data Committee, or FEDCom.
Stocks of heavy distillates and residues tumbled 20.1% to a new record low of 4.84 million barrels. Traders in Fujairah said bunker demand was currently poor, with an absence of bids and offers during the Platts Fujairah MOC process in recent days, S&P Global Platts Analytics said in a report.
‘The market is quite slow,’ a Fujairah-based trader said. Another said: ‘Demand is low and discussions are quiet now’. The premium for ex-wharf 380 CST bunker over cargoes fell to a six-week low of $5.84/mt Tuesday, the report said.
On the other hand, stocks of light distillates rose 2.7% on the week to 8.426 million barrels. Stock levels so far this year have averaged 34% higher than a year ago. In the Middle East, petrol market sentiment remained relatively unchanged due to tepid demand and ample supplies from the Mediterranean, the report said.
Stocks of middle distillates rose 8% or 201,000 barrels to 2.712 million barrels. In the Arab Gulf, demand was stable while supply was capped by scheduled maintenance at refineries, a source said.
The cold weather front hitting parts of northern Europe could begin to draw some additional barrels towards the west, although a gasoil EFS value of minus $4.32/mt Tuesday remains unfavourable for arbitrage. In spot supply, Kuwait’s KPC has sold 40,000 mt of 500 ppm gasoil for March 10-11 at a premium of 40 cents/b to the Mean of Platts Arab Gulf FOB Gasoil assessments.