(MENAFN- Emirates News Agency (WAM)) FUJAIRAH, 30th October, 2019 (WAM / S & P Platts) -- Stocks at the UAE's East Coast port of Fujairah rose 2.7 percent week on week led by a 16.1 percent increase in stocks of heavy residues, which hit a new record high, according to data released Wednesday by the Fujairah Oil Industry Zone.
Overall, total product stocks rose 589,000 barrels week on week, as heavy residue stocks rose 2.021 million barrels to 14.551 million barrels. It is the highest level of heavy residue stocks since reporting began in early 2017.
The high is partially attributed to vessels preparing for new International Maritime Organisation regulations, which will come into effect in January. The new regulations will cap the level of sulphur allowed in marine fuel to 0.5 percent from 3.5 percent currently. Kuwait was selling more volumes of high sulphur fuel oil now that peak summer demand for fuel oil for power generation had passed, according to S & P Global Platts Analytics. A refinery unit in Kuwait was also undergoing scheduled maintenance.
Stocks of light and middle distillates decreased week on week, down 10.9 percent and 25.6 percent respectively. Light distillates stood at 6.032 million barrels, down 737,000 barrels week on week, despite downward pressure in the East of Suez market from higher supply in Asia, Platts Analytics said. Middle distillate stocks stood at 2.23 million barrels, down 695,000 barrels week on week. An easing of freight rates is likely to make arbitrage economics more favorable for middle distillates, Platts Analytics said.
Platts is the official publisher of the oil product data. Fujairah has the Middle East's largest commercial storage capacity for refined products.
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