Oil products stocks at the Port of Fujairah were down 3.2 percent on the week, led by a draw in middle distillates stocks, according to the Fujairah Energy Data Committee.
Middle distillates dropped 34.6 percent week-on-week to 1.517 million barrels, marking a 12-month low and the second-lowest level since records began. An open gasoil arbitrage from markets to the east of Suez was supporting demand and increasing flows to Europe, according to Platts Analytics.
Light distillates stocks also dropped by 2.7 percent on the week to 9.733 million barrels. But stocks remain at high levels in comparison with previous years. Weak demand for gasoline east of Suez has fuelled concerns over global oversupply and the outlook for the market remains bearish.
Heavy residue stocks rose to 6.489 million barrels, an 8.1 percent increase from the previous week.
“Bunker demand in Fujairah was little changed the week as crude prices stabilised following production cuts agreed by OPEC and other producers last Friday,” Platts Analytics said. The supply outlook in September is expected to be higher, which could help support demand for cargoes from the port.
S&P Global Platts holds exclusive rights to publish Fujairah oil inventory data, and has deployed a blockchain network for its collation.