Oil product stocks at the Port of Fujairah in the UAE remained relatively unchanged for the week ending May 5, according to data released on May 7. While fuel oils and middle distillates experienced declines, these were offset by a significant 9.4% increase in gasoline and other light distillates. The total inventory rose by 0.1% to 20.742 million barrels, recovering from a one-month low reported the previous week. Notably, middle distillates fell by 20% to 1.730 million barrels, marking a seven-month low.
Meanwhile, heavy distillates, which are used for power generation and shipping, dropped by 2.6% to 10.462 million barrels, reaching a six-week low. In contrast, light distillates increased to 8.550 million barrels after also hitting a one-month low last week. In terms of fuel oil exports, Fujairah achieved a remarkable monthly average of 1 million barrels per day (b/d) in May, significantly higher than the 272,000 b/d exported in April. A substantial portion of these exports is directed toward China, with 679,000 b/d reported, the highest level ever, compared to a historical monthly average of less than 100,000 b/d since 2016.
Additionally, 155,000 b/d is being shipped to Singapore, marking the highest volume since June 2023. However, exports to Saudi Arabia have ceased following three months of consistent deliveries, with Saudi Arabia contributing 17,000 b/d to Fujairah this month. As temperatures in Dubai have soared above 100°F recently, Middle Eastern power plants are ramping up electricity generation to meet increased air conditioning demands. ADNOC Gas is benefiting from the hot weather, which has resulted in higher natural gas sales for power generation.
On the price front, the price for 0.5% sulfur fuel oil delivered to Fujairah was assessed at $483 per metric ton on May 6, down from a recent high of $497 per metric ton on April 23. High sulfur fuel oil was valued at $396 per metric ton on the same date, nearing this year’s low of $388 per metric ton recorded on April 9.