Bunker stocks are building at the UAE oil hub of Fujairah. Image Credit: File Image / Pixabay
Fuel oil stocks at the Middle Eastern hub of Fujairah jumped by 17% last week, according to data from the Fujairah Oil Industry Zone and price reporting agency S&P Global Platts.
Heavy distillate and residue inventories climbed to 15.167 million barrels in the week to Monday, from 12.954 million barrels a week earlier.
The category includes both high- and low-sulfur bunker fuels as well as fuel oil used for power generation.
Very low sulfur fuel oil (VLSFO) prices at Fujairah dropped to a record low of $445.50/mt on Thursday, according to Ship & Bunker pricing, as the COVID-19 virus outbreak dented demand for shipping and increased concerns over lower global economic growth this year.
But the price drop in Singapore has been more severe, meaning Fujairah’s prices have risen to a premium to Singapore’s levels this week.