As of Monday, December 31 total oil product stocks in Fujairah stood at 17.348 million barrels – down by 1.9% week on week.
Stocks of light distillates fell by 2.1% week on week to 9.669 million barrels. Stocks saw little change from recent levels, averaging 9.72 million barrels through the month of December. Light stocks have been persistently high during 4Q 2018 amid a weak market and contango structure for gasoline and other light distillates.
Stocks of middle distillates fell by 9.5% week on week to 1.463 million barrels. Inventories fell to their lowest since January 1, 2018, which may be down to some traders looking to clear volumes by year-end. While the East of Suez gasoil market was still weak from oversupply woes, sentiment was a touch improved as compared to earlier in December. ‘Arab Gulf swing barrels are still going towards Europe and East Africa, and since none of those barrels, or those from India, are heading to Asia for December, this will give us some time to digest the overhang in volumes,’ a market participant said last week.
Stocks of heavy residues edged up by 0.4% week on week to 6.216 million barrels. Bunker activity has been quiet in recent days as market participants had mostly covered their requirements prior to the year-end holiday period.