Stocks of heavy residues in Fujairah have increased to an 11-week high of 8.249 million barrels in the week to January 7, according to the Fujairah Energy Data Committee this week.
Residue stocks were up 32.7% week on week, and was last higher at 8.373 million barrels in the week ended October 22, the data showed.
Ample cargo supply and slow bunker demand buoyed stocks in Fujairah, market sources said.
This was reflected in a month on month fall in Fujairah bunker fuel premiums. The ex-wharf 380 CST bunker fuel premium over the Mean of Platts Arab Gulf 180CST high sulfur fuel oil assessments averaged $10/mt in January to date, compared to an average of $13/mt in December, based on S&P Global Platts data.
"We were expecting more demand this week but it's still a relatively quiet market, even though New Year holidays are long over," a Fujairah-based bunker trader said.
"Ex-wharf supply is fine and delivered avails are okay for prompt dates," another bunker trader said.
There was also less fuel oil cargo outflow from the Middle East to Asia owing to a softer Singapore fuel oil market in recent weeks.
"Asian market became weak [in December] and not many cargoes were shipped from the Middle East," a Singapore-based fuel oil trader said.
Singapore high sulfur fuel oil market weakened in the second-half of December, amid sufficient supply coupled with poor bunker demand.
The Singapore 380 CST cash differential dropped to $2.58/mt on December 18, the lowest since June 14, when it was assessed at $2.57/mt, Platts data showed.
