STOCKS DATA: Fujairah middle distillate stocks slip to 3-mth low

Quantum Commodity Intelligence – Inventories of diesel and jet fuel in the biggest fuel storage hub in the Middle East fell to a three-month low last week, according to data from FEDcom.

Stocks of middle distillates dropped 350,000 barrels to 2.67 million barrels, the lowest level since early June, the data showed, but around 10% higher than the average so far this year as the region is believed to be used as a storage hub for Russian distillates flowing east.

The fall in stocks comes amid surging diesel values in Europe with demand and rising costs pushing the value of the middle distillate around $50/b above crude.

Stocks of light distillates, such as gasoline and naphtha, also fell, dropping 200,000 barrels to hit a six-week low of 7.07 million barrels – 15% above the 2022 average.

Meanwhile, stocks of fuel oil crept to a three-week high.

Inventories approached nearly 12 million barrels, up 320,000 barrels on the week and 20% above the average so far this year.

Fuel oil cracks in Asia remain depressed as refinery runs are maximised and Russian flows swell storage levels.