FUJAIRAH DATA: Oil product stockpiles drop 1.5% after second-highest annual exports

Banner Image

Oil product stockpiles at the UAE's Port of Fujairah dropped 1.5% in the week ended Jan. 2, after exports for 2022 reached the second-highest on record, according to Fujairah Oil Industry Zone and Kpler data.

Total inventories were at 20.349 million barrels as of Jan. 2, a two-week low, the FOIZ data provided exclusively to S&P Global Commodities Insights on Jan. 4 showed. Product exports averaged 620,000 b/d in 2022, down 2.2% from the record 634,000 b/d set in 2021, according to Kpler data. Singapore was the largest destination for product exports last year, followed by Saudi Arabia. Shipments to the US jumped 30-fold while exports to Poland, Lebanon, Libya and Cyprus were recorded for the first time.

Light distillates including gasoline and naphtha led stockpiles lower, falling 8.6% in the week ended Jan. 2 to 6.827 million barrels, a two-week low. Middle distillates such as jet fuel and diesel rose 1% over the same period to 3.119 million barrels, a three-week high.

Heavy distillates used as fuel for power generation and marine bunkers gained 2.9% to 10.403 million barrels as of Jan. 2, the first increase in three weeks after hitting a six-month low a week earlier.

Bunker demand was subdued over the year-end holidays and strong winds caused some sellers to defer refueling schedules, local bunker suppliers said.

"We were not arranging any new barge loadings [during the week ended Dec. 30]... Exited the market once we have sold out the limited quantities [left for the year] and returned after the holidays," a Fujairah-based bunker supplier said.

Supplies may continue to increase as delivery lead times were down to four to six days as of Jan. 3, from seven to eight days a week earlier, according to market sources.

The Platts Fujairah-delivered marine fuel 0.5%S bunker premium over the benchmark FOB Singapore marine fuel 0.5%S cargo value was at $37.35/mt Jan. 3, down from an average $38.13/mt during the week ended Dec. 30 and $44.01/mt in the week ended Dec. 23, according to S&P Global data.

Still, there is above-average demand for high sulfur fuel oil, traders said.

"There's some demand for HSFO and LSFO. Barges have been quite tight across Fujairah currently," a bunker supplier said.

The Platts Fujairah-delivered 380 CST high sulfur fuel oil bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo assessments was at $48.84/mt Jan. 3, up from an average $42.46/mt in the week ended Dec. 30 and $43.88/mt in the week ended Dec. 23, S&P Global data showed.

Total stockpiles for 2022 jumped 29% for the year, the most on record since FOIZ began providing the data to S&P Global in January 2017.

Light distillates stockpiles led the gains for the year, up 72% followed by a 45% jump for middle distillates and 6.3% increase for heavy distillates.

Tags

  • Crude

Related content

News

Infographic: India Elections - Oil sector to be in spotlight for India's new government

India’s role in global oil markets is set to expand at a fast pace by the end of the decade, making it the biggest hub for demand growth. Battling high prices, oil diplomacy with countries such as the US and Russia, as well as revival of flagging upstream production will be some of the key priorities for the new government. Related feature: INDIA ELECTIONS: Refining capacity, crude output, storage to top new government's oil agenda Click here for full-size infographic

News

Interactive: Seaborne trade in Russian oil under G7 price cap

(Latest update: May 10, 2024) Related content: Russian crude exports by non-G7 tankers hit new high in April since price cap Russia, one of the world’s largest oil suppliers, has increasingly turned to non-Western firms to transport its crude to overseas buyers during its ongoing war with Ukraine . With a dual goal of undermining Russia’s war chest without creating significant disruptions to global supplies amid inflation pressure, G7 countries and their allies have banned tanker operators, insurers and other services firms from facilitating seaborne Russian crude exports unless the barrels are sold for no more than $60/b. The price cap regime, which came into force Dec. 5, 2022, does not directly cover tankers flagged, owned and operated by companies outside the G7, the EU, Australia, Switzerland and Norway, and not insured by Western protection and indemnity clubs. While such ships tend to be older and less maintained, their share in Russia’s crude exports market has been rising in recent months amid strengthening prices of Urals -- the OPEC+ member’s flagship crude grade -- and tightening sanctions enforcement by the West. Non-price-capped tankers have a larger market share in shipping Russia’s Pacific crude exports, according to analysis of S&P Global Commodities at Sea and Maritime Intelligence Risk Suite data. Crudes such as Sokol, Sakhalin Blend, and Eastern Siberia–Pacific Ocean grades are more often involved in these trades than Russian barrels from Baltic or Black Sea ports like Urals. Tanker operators in Greece, Europe’s top shipowning nation, managed to keep their traditionally strong market position in Russia in the first few months since the price cap took effect before giving ways to their peers in the UAE, Russia, China and Hong Kong. Related content: Interactive: Global oil flow tracker

News

Interactive: Global oil flow tracker

(Latest update May 3, 2024) Recording changes to Russian oil exports and EU oil imports since the war in Ukraine Russia’s war in Ukraine has triggered a major upheaval in the global oil markets, forcing Moscow to find alternative buyers and Europe to source new supplies as Western sanctions seek to clamp down on Moscow’s vital oil revenues. With an EU embargo and the G7 price cap on Moscow's oil now fully in place, Russian seaborne crude exports have remained largely resilient as displaced volumes of its discounted oil flow East. Russian oil product exports have also mostly held up with new buyers in Africa absorbing Russian diesel and other fuels now banned from Europe. Related stories: Russian oil product exports slump to post-pandemic low as drone hits resume (subscriber content)

News

Infographic: Chasing the lowest-carbon crudes

Global oil producers are increasingly touting efforts to reduce the carbon intensity of their upstream operations to stand out as investment dollars shrink during the energy transition. Some producers see carbon intensity rankings as a measure of which fields will have staying power, while environmental groups say the efforts ignore the much larger global warming emissions created downstream when the oil is refined for transportation, shipping and petrochemicals. S&P Global Commodity Insights Analytics has expanded its carbon intensity calculations to 162 fields and 41 grades. The greenhouse gas emissions represent current operations from the wellhead to storage/export terminal. The newest expansion of fields and grades covers Central, South, and North America. South and Central American grades are shown in the infographic below.