Total inventories up 29% year to date
Heavy distillates rise 39% in one week
Middle distillates more than double in four weeks
Oil products stockpiles at Fujairah in the UAE climbed 12% in the week ended Oct. 20, led by a 39% rise in heavy distillates used as fuel oil for power generation and shipping, according to Fujairah Oil Industry Zone data published Oct. 22.
The total rose to 20.014 million barrels, the third consecutive increase and the highest in 13 weeks. Inventories are up 29% since the start of 2025.
Heavy distillates rose to 8.52 million barrels, a two-month high. Light distillates, including gasoline and naphtha, dropped 9.7% to 7.879 million barrels, slipping below heavy distillates for the first time in six weeks.
Middle distillates increased 23% to 3.615 million barrels, the highest since June 2024. The stocks have more than doubled in the past four weeks.
Heavy distillates have increased 13% since the end of 2024, while light distillates have climbed 30% and middle distillates by 84%, according to the FOIZ data compiled by S&P Global Commodity Insights since 2017.
Buoyed inflows of replenishment on-specification LSFO cargoes and components designated for the marine fuel 0.5%S blending pool gradually softened downstream valuations as supply conditions normalize, according to traders.
Barging schedules for prompt refueling slots are also widely available in recent trading days, whereas demand flows were mostly moderate or slipping to below-average levels recently, thus slowing LSFO inventory draws.
Platts, part of S&P Global Commodity Insights, assessed the Fujairah-delivered LSFO marine fuel premium over the FOB Singapore cargo values averaged $12.78/mt Oct. 1-21, slightly below the $13.15/mt across all of September.
Meanwhile, anxieties over delayed high sulfur fuel oil loadings also eased over the past week as more downstream suppliers could eventually secure cargoes to meet their commitments in the delivered markets, traders said.
Although competition among HSFO sellers recently heated up amid ample stockpiles, suppliers’ profit margins stayed generally healthy as premiums managed to hold around reasonable levels, according to bunker suppliers..
Availabilities of prompt barging slots progressively increased in the meantime, as more offers for prompt refueling requirements surface, bunker suppliers said.
The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium to the 380 CST 3.5%S FOB Arab Gulf fuel oil cargoes averaged higher at $37.24/mt so far since October, surging from the $13.59/mt in September.
Source: Platts
