Fujairah fuel oil stocks climb 23% to 4-week high

London, (Quantum Commodity Intelligence) – Residual fuel stocks at the bunkering hub of Fujairah rose 23% in the week ending May 31 to the highest level in four weeks, according to data from S&P Global Platts and FEDcom.

Fuel stocks reached 14.65 million barrels, up 2.78 million barrels on the week, to reach the third highest weekly total in more than nine months and 40% above the average level for 2019, before the pandemic.

Fuel oil cracks for marine fuel 0.5%-sulfur fell 66% throughout the course of May on a FOB Singapore basis from $3.69/b to $1.39/b, according to Quantum data, with 3.5% sulfur cracks falling from -$7.59 to -$10.53/b on low demand and the prospect of more heavy sour crude hitting the market.

However, on Tuesday, cracks surged to -$9.30/b for high sulfur and $3.31/b for 0.5% marine fuel.

Swap spreads between FOB Singapore and FOB Arab Gulf for fuel remain at around -$10/mt, reflecting the freight netback.

Elsewhere, middle distillate stocks rose 12% to 3.8 million barrels – a three week high – while light end stocks flatlined at 5.2 million barrels.