FUJAIRAH, 16th October, 2019 (WAM /S&P Platts) -- Volumes of oil products held in storage at Fujairah have risen to their highest since early June, as a surge in regional demand and preparations for new sulphur regulations on marine fuels drive more supplies into the eastern UAE port.
Stocks rose almost 11% - 2.214 million barrels - last week to stand at 22.706 million barrels, as of Monday, with the greatest build seen in light distillates, according to data released Wednesday by the Fujairah Oil Industry Zone, FOIZ.
Light distillate inventories rose 1.423 million barrels, or 25%, in the week to a total of 7.106 million barrels, the data showed. Market sources said the gasoline market East of Suez has seen an uptick in crack spreads, led largely by stronger demand.
The FOB Singapore 92 RON gasoline crack against front-month ICE Brent was assessed at US$9.74/b on Tuesday, standing US$2.62/b higher than the US$7.12/b that the crack averaged during September, S&P Global Platts data showed.
In middle distillates, stocks built by 600,000 barrels, or 27%, to stand at 2.829 million barrels, the Fujairah Oil Industry Zone data showed. Supply concerns along with a rise in demand have led to higher prices for middle distillates in recent weeks.
Heavy distillate stocks rose 191,000 barrels, or 1.5%, to 12.771 million barrels, the second-highest level since Fujairah stock reporting began at the start of 2017. The record high is 13.456 million barrels seen on 17th July, 2017.
Preparations for the International Maritime Organisation's tighter sulphur regulations on marine fuels that go into effect in January have resulted in higher demand for - and supplies of - compliant bunker fuel, market sources have said, as shipowners start to gradually shift their usage away from high sulfur fuel oil.
S&P Global Platts is the official publisher of the oil product data. Fujairah has the Middle East's largest commercial storage capacity for refined products.