As of Monday, September 17, total oil product stocks in Fujairah stood at 17.998 million barrels – down by 4.8% week on week.
Stocks of light distillates fell by 11.7% week on week to 5.891 million barrels. Sentiment in the East of Suez petrol market remains firm on the back of continued demand from the Middle East, market sources said. Premiums for Arab Gulf RON 95 petrol were up to a five-week high of $3.80/b yesterday.
Petrol flows from northeast Europe to the Middle East continue, with new fixtures for petrol-laden vessels from the ARA region and the UK to the Arab Gulf reported this week. Hurricane Florence had limited disruption on US petrol supply, with the impact expected to result in lower demand, which will keep European supply focused on the East.
Stocks of middle distillates edged up by 0.1% week on week to 4.181 million barrels – a new year to date high and the highest since July 24, 2017. Gasoil market sentiment has been little changed over the past week. The pull on Middle Eastern gasoil and jet fuel remains stronger to the east than the west. The East-West Exchange of Futures for Swaps was at minus $2.91/mt for October and minus $7.70/mt for November. The EFS generally needs to widen to minus $10-$15/mt before arbitrage economics to move gasoil would be feasible.
Stocks of heavy distillates and residues fell by 1.6% week on week to 7.926 million barrels. In Fujairah, bullish crude price sentiment was said to be driving interest amongst bunker buyers on Monday. Buyers with prompt requirements are looking to fulfill their demand in anticipation that flat prices may continue to rise. ‘It’s manic today,’ said a Fujairah-based trader on the influx in inquiries. Upcoming US sanctions are expected to reduce Iranian crude exports sharply, and could also impact Iranian fuel oil supply to Fujairah. Delivered 380 CST bunker prices in Fujairah were $18/mt above Singapore yesterday; typically prices at the two ports are close to parity.