SINGAPORE: Total refined product stocks at the Port of Fujairah stood at 18.18 million barrels in the week to 4th December, up 9.1% from the previous week, according to data from the Fujairah Energy Data Committee (FEDCom).

After hitting a record low on 13th November, stocks have risen by 20% on the back of a rebound in heavy distillate volumes, S&P Global Platts Analytics said in a report.

Stocks of light distillates, including gasoline and naphtha, rose 9.1% week on week to 4.656 million barrels, but remain largely rangebound, in line with levels seen in recent weeks. Demand in both Asia and the Middle East is strong, which is drawing in rising European volumes due to a closed trans-Atlantic arbitrage to the US.

Meanwhile, refinery outages and delays in the Middle East are contributing to tighter regional gasoline supplies, Platts Analytics said.

Stocks of middle distillates fell 18.7% week on week to 1.212 million barrels, hitting a new record low for the third consecutive week.

The spread between the front-month Singapore gasoil swaps and ICE gasoil futures narrowed to minus $7.46/mt on 5th December, which is not wide enough for the arbitrage from East of Suez to Europe to work. Fundamentals for gasoil in Asia and the Middle East are seen as stable, although a closed arbitrage to Europe continues to squeeze premiums for Mean of Platts Singapore 10 ppm gasoil. Given the closed arbitrage, cargoes from India and the Middle East were likely to flow to Singapore instead, Platts Analytics said.

Stocks of heavy distillates and residues rose 12.9% to 12.314 million barrels. Stocks were at a 20-week high and have risen by 48% since hitting a nine-month low of 8.32 million barrels on 13th November.

WAM