As of Monday, December 3 total oil product stocks in Fujairah stood at 18.322 million barrels – up by 6.7% week on week.
Stocks of light distillates jumped by 14.2% week on week to 10.003 million barrels. Gasoline markets remain bearish globally, with benchmark cracks in Asia and Europe in the negative. The Asian gasoline market remained in the doldrums Monday due to the persisting supply surplus and bearish near-term outlook. ‘Things are still not looking too good; it does not look like any [refiner] intends to cut rates for the time being,’ one refinery source says. ‘We are looking for news on refinery turnarounds but indications so far have been that the impact might only be small,’ another source said.
Stocks of middle distillates rose by 3.2% week on week to 2.318 million barrels – up slightly from the previous week’s six-month low. Gasoil shipments from the Middle East into the Mediterranean have increased recently, with four vessels arriving into the region in the last seven days carrying diesel from the East of Suez. ‘There are many cargoes around, nothing distressed, but some large cargoes are coming from the [Arab] Gulf, and the month of December is generally quieter in terms of demand as some people rush to get supply in November,’ one market participant says. However, there are some indications arbitrage economics are tightening; the East-West gasoil exchange-for-swaps (EFS) rebounded from a 13-month last week to minus $15.62/mt yesterday.
Stocks of heavy residues dipped by 2.6% week on week to 6.001 million barrels – the lowest total since February 26. Bunker prices rebounded strongly in line with higher crude prices due to expectations OPEC and Russia will announce a production cut at its meeting in Vienna. Fujairah’s bunker demand was slowly emerging, while deliveries were slightly tighter for prompt dates, market sources said. Bunker premiums in Fujairah have cooled from the highs seen last week, but remain strong amid lessened supply from Iran due to fears over US sanctions.