Oil product inventories at the UAE’s Port of Fujairah saw a significant decline of 5.9% in the week ending April 28. According to data from the Fujairah Oil Industry Zone published on April 30, total stocks fell to 20.721 million barrels, marking the lowest level since March 24. The drop was particularly notable in jet fuel, diesel, and other middle distillates, which decreased by 13%, bringing their total down to 2.168 million barrels.
Additionally, light distillates such as gasoline and naphtha experienced a 12% decline, also reaching one-month lows at 7.815 million barrels. Contrarily, heavy distillates used for power generation and shipping saw a slight increase of 1.1%, rising to 10.738 million barrels after a substantial decrease of 20% over the past two weeks. Refined product exports from Fujairah averaged 442,000 barrels per day this month, which is the lowest level since January.
Notably, Saudi Arabia emerged as the top destination for fuel exports in April, receiving 86,900 barrels per day, with 75,600 of that being fuel oil and high-sulfur fuel oil. Furthermore, fuel oil imports into Saudi Arabia from Fujairah are on track to set a monthly record, estimated at 66,900 barrels per day for April. A significant portion, around 40,800 barrels per day, is directed to Saudi Electricity, highlighting rising electricity demands due to the early onset of hot summer weather in the region.
In market pricing, the Platts-assessed 0.5% sulfur fuel oil delivered to Fujairah has rebounded from earlier lows, closing at $488 per metric ton on April 29. Similarly, high-sulfur fuel oil (HSFO) prices have risen to $420 per metric ton from a low of $388 per metric ton earlier in the month.