As of Monday, September 9 total oil product stocks in Fujairah stood at 17.355 million barrels. Stocks fell by 2.54 million barrels week on week. This is the first time they have stood around 17 million barrels since the end of 2018 when they fell to 17.348 million barrels on December 31, 2018. Overall product stocks fell by 12.8% with a drawdown across all three product stock categories.
Stocks of light distillates fell by 438,000 barrels reflecting a fall of 7.2% week on week. Total volumes stood at 5.654 million barrels. This is the lowest level since late August last year when they stood at 5.225 million barrels on August 27, 2018. Gasoline East of Suez remained supported sources noted with refinery outages in Asia propping up the market, sources noted. The FOB Singapore 92 RON gasoline crack against front month ICE Brent was assessed at $5.68/b on Tuesday, reflecting a rise of $1.14/b week on week, S&P Global Platts data showed.
Stocks of middle distillates fell by 24.8%, drawing down 486,000 barrels to stand at 1.472 million barrels at the start of the week. This is the lowest level since late January when they stood at 1.269 million barrels on January 28 this year. Sentiment in the East of Suez gasoil market remained bearish amid tepid demand, sources said. “Demand for gasoil cargoes in North Asia is quite bad now, and there are a lot of prompt cargoes around…the front-month backwardation is also starting to flatten out,” an industry source said.
Stocks of heavy distillates fell by 13.6%, drawing down by 1.616 million barrels on the week to stand at 10.229 million barrels. Tight availability in Singapore for delivered bunkers in comparison to Fujairah was leading to the persistence of a relatively wide price spread between the two ports. The spread between 380 CST delivered bunker in Singapore and Fujairah was assessed at $33.25/mt yesterday with the South East Asian port seeing premiums compared to the Arab Gulf port fall $12.25/mt week on week.
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