Fujairah light end stocks fall to eight-month low

London, (Quantum Commodity Intelligence) – Light end stocks fell to their lowest level since October at the port of Fujairah, according to data from S&P Global Platts and FEDCom, amid rampant demand for naphtha in Asia.

Despite relatively weak gasoline cracks globally, inventories in the UAE hub fell to 4.978 million barrels, down 247,000 barrels on the week.

Stocks of light ends, which include gasoline, naphtha and LPG, have now fallen 20% in just three weeks amid high demand from the petrochemical sector for naphtha that has been fuelled by rising chemical prices.

Naphtha cracks have hit their highest in three months, according to Quantum data.

Fujairah does not break down the inventories by product.

Light end stocks are around half the average of 2019 and 25% below the average weekly stock count this year, according to the data.

Middle distillate stocks also slipped, but to a lesser extent.

Inventories of fuels such as diesel and jet, stand at 3.484 million barrels, down 335,000 barrels on the week.

The figure equates to 50% higher than the 2019 average and 10% down on the average so far this year.

Elsewhere, fuel oil stocks slipped 777,000 barrels to leave stockpiles at 13.873 million barrels – retracing from a four week high.

Inventories of residuals stand at around 20% more than the average so far this year and 30% above the 2019 average.