UAE Fujairah Port oil product stocks drop, Russian fuel oil imports surge

Oil product stockpiles at UAE’s Port of Fujairah witnessed slight drop by 0.4 per cent to 17.803 million barrels in the week ended August 26. Meanwhile, the stockpiles have increased by 2.7 per cent since the end of 2023.

Light distillates, including gasoline and naphtha, fell 14 per cent to 6.282 million barrels, while middle distillates, such as diesel and jet fuel, declined by 7.4 per cent to 2.586 million barrels, both reaching two-week lows. Conversely, heavy distillates and residues used for power and shipping rose 15 per cent to 8.935 million barrels, marking the first increase in four weeks.

Pakistan resumed gasoline imports from Fujairah, receiving 492,000 barrels in the week starting August 19, the highest amount since mid-June. Despite efforts to boost domestic refinery capabilities, shipments from Fujairah to Pakistan have averaged 20,700 barrels per day this year, up from 17,800 b/d in 2023.

Fuel oil imports from Russia surged to 1.26 million barrels in August 19 week, the highest since March 11, following zero imports the previous week.

Demand for fuel oil at Fujairah, the world’s third-largest bunkering hub, has remained steady. The low sulfur fuel oil (LSFO) premium increased to $14.15 per metric ton in August, up from $12.13 in July. Meanwhile, the high sulfur fuel oil (HSFO) premium fell to $22.66 per metric ton from $23.92.

Since the end of 2023, light distillate stocks have risen by 34 per cent, heavy distillates have decreased by 12 per cent, and middle distillates have increased by 3.2 per cent.

Attribution: S&P Global Commodities insights

Subediting: M. S. Salama