Fujairah residual stocks hold steady as gasoil inventories build

Heavy distillate and residual stocks in Fujairah, the pool behind HSFO and VLSFO, averaged 4.43 million barrels so far in November. That is down only 18,000 barrels from the October average, according to port zone figures reported by Engine.

Middle distillates, which include gasoil, moved the other way. They rose by 669,000 barrels to an average of 3.04 million barrels, about 28% more than in October.

The extra gasoil in storage has not shown up in the bunker market yet. Engine reports that supply in Fujairah is still tight for all three grades, both for prompt dates and later ones. The LSMGO price there has climbed sharply over the past two days, and its premium over Singapore and Zhoushan has widened again.

For buyers, this means the usual Fujairah advice still applies:

• Send enquiries early for HSFO, VLSFO and LSMGO, not only for prompt stems.
• For gasoil, compare Fujairah with Singapore or Zhoushan if the voyage allows a stop there.
• Watch the weekly stock figures, since a sustained build in distillates could ease LSMGO availability later in the month.