FUJAIRAH DATA: stocks of petroleum products exceed 20 million barrels for the first time since July
Total inventories up 2.2% to 20.30 million barrels
Gains in light and heavy products offset the draw of middle distillates
Lower temperatures and rising prices contribute to construction
Inventories of refined products at the UAE port of Fujairah rose 2.2% in the week to November 15, building on the previous week’s record hike to break through the 20 million barrels mark for China. first time since July 26, according to data from the Fujairah Oil Industry Zone. supplied exclusively to S&P Global Platts.
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Total inventories stood at 20.30 million barrels, up from 19.85 million barrels for the week ending Nov. 8, with gains from light and heavy distillates more than offsetting lower middle distillates, the data showed.
The two-week gain is a sharp rebound from levels seen over the past three months, when total inventories were as low as 15 million barrels on September 20. but temperatures have moderated in the region as winter approaches.
Heavy distillate stocks, which also include marine fuels, rose 3.6% to 10.88 million barrels for the week, with traders citing some tension in the availability of barges and cargoes, as well as lower demand due to higher net prices.
Marine fuel delivered to Fujairah with a maximum of 0.5% sulfur was valued at $ 618 / mt on November 16. The price in Fujairah was valued at a premium of $ 2 / mt compared to Singapore which saw its bunkers delivered on the same basis valued at $ 616 / mt.
Light distillates, including gasoline and naphtha, rose 3% to 5.84 million barrels, the data showed. Traders said they expect gasoline demand in Southeast Asia to pick up after several months of COVID-19-related mobility restrictions, while Chinese exports may increase as domestic refineries are looking to ship more cargo amid a wave of infections in the country.
Inventories of middle distillates, including diesel and jet fuel, fell 2.8% to 3.58 million barrels, with diesel fundamentals still supported by strong demand in South and Southeast Asia.