Rapid increase in product exports excluding fuel oil
Supplies from Iraq increase
Total inventory will increase by 14% from the end of 2023
Petroleum product inventories at the UAE’s Fujairah port fell 1.3% in the week to March 25 from an eight-month high the previous week, with exports showing signs of picking up this month, according to Fujairah Oil Industrial Zone and shipping data. It shows.
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According to FOIZ data released on March 27, total inventories stood at 19,785,000 barrels as of March 25, down from 20,004,900 barrels the previous week and the highest level since July 10. . Stockpiles have increased by 14% since the end of 2023.
Inventories of heavy distillates, which are used as fuel oil for power generation and maritime operations, fell 6.3% from the previous week to 9.971 million barrels, the lowest level in two weeks. Production of light distillates such as gasoline and naphtha rose 2.7% to 7.733 million barrels, the highest level in three weeks. Middle distillates, which include jet fuel and diesel, rose 11% to 2,081,000 barrels, the highest level in a month. So far since the end of 2023, light distillates stocks are up 65%, while heavy distillates are down 1.7% and middle distillates are down 17%.
Exports of products excluding fuel oil averaged 642,000 barrels per day this month, the highest level since November 2020, compared to 370,000 barrels per day in February, according to data from S&P Global Commodities at Sea. This was increased from 5,000 barrels. The main export destination this month was South Korea, with 122,000 barrels per day, the highest since 2016. Most of the shipments are classified as clean products along with naphtha. Imports of refined products, excluding fuel oil, from Iraq and Kuwait doubled this month, data showed.
As for fuel oil, shipments averaged 64,000 barrels per day in March, down from 85,000 barrels per day in February and the lowest since 2017.
Traders say demand for marine fuel remains strong enough to support price increases, with more ships calling at Fujairah to refuel before circumnavigating Africa, avoiding the Red Sea. It is said to be very strong. Recent weather disruptions have eased and the barge’s schedule has returned to normal.
“Business is going well,” said a Fujairah-based banker trader.
According to S&P Global data, Platts Fujairah shipments of marine fuel 0.5% sulfur bunkers fetched $16.68/tonne as of March 26, above the benchmark FOB Singapore marine fuel 0.5% S cargo price the previous week. It rose by $3.28 compared to the previous year.
The Platts-rated bunker premium for a 380 CST HSFO bunker from Fujairah FOB 380 CST 3.5%FOB rose by $6.45 over the same period to $25.08 on March 26th.
