(MENAFN- Emirates News Agency (WAM))
FUJAIRAH, 29th November 2017 (WAM/Platts) -- Total refined product stocks at the Port of Fujairah stood at 16.665 million barrels in the week to 27th November, up 5 percent from the previous week, according to data from the Fujairah Energy Data Committee, FEDCom.
After hitting a record low on November 13th, stocks have risen by 10 percent in two weeks on the back of a rebound in heavy distillate volumes, S & P Global Platts Analytics said in a report.
Stocks of light distillates fell by 9.1 percent week on week to 4.267 million barrels, but have remained largely range bound over the past two months, the data showed.
Globally, gasoline trading activity saw a lull recently due to the Thanksgiving holiday in the US last week.
Stocks of middle distillates fell by 2.7 percent week on week to 1.49 million barrels, marking the second consecutive record low for middle stocks.
Supply of ultra-low sulphur gasoil is expected to balloon in Asia amid high regional output and a shut East-West arbitrage, Platts Analytics said. With the Western arbitrage hampered, additional volumes of low sulphur gasoil have been flowing from the Middle East to Asia, which has squeezed quality premiums for Singapore 10 ppm gasoil to a two month low, it added.
Stocks of heavy distillates and residues rose by 13.1 percent week on week to 10.908 million barrels, the data showed. Stocks climbed above 10 million barrels for the first time in nine weeks, and are up by 31 percent from a nine-month low of 8.32 million barrels on 13th November.
A backwardated market structure has weighed against holding fuel oil in storage, but this has moderated recently. The front month backwardation in Arab Gulf 180 CST swaps has narrowed to an average of $1.10/mt so far this month, compared with $1.73/mt in October and $2.02/mt in September.
Cargoes moving from the Middle East to Singapore are estimated at 2.5 million mt for November and will likely edge higher in December, with Singapore fuel oil prices currently $7-$8/mt above the Arab Gulf. Added to this, the Fujairah bunker market is still seeing sluggish demand, with less regional need for fuel oil in power generation due to the winter season, Platts Analytics said.
MENAFN2911201700610000ID1096164578
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.