Saudi Arabia imports ‘high cost’ fuel oil, prince says
Middle distillate inventories also fall
Record Saudi shipment of 780,000 barrels: Kpler
Stockpiles of petroleum products at the port of Fujairah in the United Arab Emirates fell for the first time in three weeks after a record shipment of fuel oil to Saudi Arabia ahead of peak summer electricity demand.
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Total inventory was 17.742 million barrels as of May 16, down 3.1% from the previous week and the lowest in two weeks, according to data from the Fujairah Oil Industry Zone provided exclusively. at S&P Global Commodity Insights on May 18. Heavy distillates and residues used as fuel oil for power generation and marine bunkers fell 6.6% to 10.342 million barrels during the same period, the second straight weekly decline to the lowest since March 28.
A record weekly shipment of 780,000 barrels of fuel oil was headed to Saudi Arabia from Fujairah for the week started May 9, according to Kpler data. Saudi Energy Minister Prince Abdulaziz bin Salman told a conference in Bahrain on May 16 that Saudi Arabia was burning crude oil and fuel oil for power generation, and fuel oil was imported “at high cost”.
The kingdom aims to raise the share of natural gas in national electricity generation to 50% by 2030, leaving more crude oil for export, he said. Electricity demand in the region increases in summer as temperatures rise, which drives air conditioning use, then declines in winter. Last year, Saudi Arabia’s crude consumption peaked in July, according to the Joint Organizations Data Initiative.
Middle distillate stocks in Fujairah stood at 1.706 million barrels as of May 16, down 11.3% from the previous week and the first drop in four weeks. Light distillates rose 6.9% to 5.694 million barrels, the highest since March 28.
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