Total inventory down 25.71% over the past year
Gasoline on the way to Kenya: Kpler
Bunker demand would be improved
Petroleum product inventories at the port of Fujairah in the United Arab Emirates fell to their lowest level in three weeks on April 25 after a rare shipment of fuel oil to the United States, according to the Fujairah Petroleum Industry Zone and Kpler’s shipping data.
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Total inventory was 16.088 million barrels as of April 25, down 5.7% from the previous week and the lowest since April 4, according to FOIZ data released April 27.
Stockpiles of heavy distillates and residues used as fuel for power generation and marine bunkers fell 7.4% over the same period to 11.068 million barrels, the first drop in five weeks, according to the data provided. exclusively to S&P Global Commodity Insights.
Some 1.06 million barrels of fuel oil were to be exported from Fujairah to the United States during the week of April 18, only the second such shipment since at least June 2020, according to Kpler data. The other weekly fuel oil delivery to the United States from Fujairah took place in February, according to Kpler. Bunker demand has also improved in Fujairah, sources told S&P Global.
Heavy distillates are needed at this time of year as Saudi Arabia seeks to use more fuel oil instead of crude oil for power generation as demand for air conditioning increases with summer. Other countries in the Middle East, including the United Arab Emirates, generally depend on natural gas for electricity generation. Heavy distillate inventories are 14.5% lower compared to the same period last year.
Middle distillate inventories, including jet fuel and diesel, stood at 1.271 million barrels as of April 25, up 9% from the previous week and the first gain in three weeks. Middle distillate stocks are down 60.62% over the past year.
Stocks of light distillates, including gasoline and naphtha, stood at 3.749 million barrels as of April 25, down 4.9% from the previous week and the lowest in three weeks. Light distillates are down 31.61% since the same time last year. Naphtha shipments were directed to Japan and Taiwan from Fujairah for the week started April 18 while 707,000 barrels of gasoline were destined for Kenya, according to Kpler data.