Oil product reserves in the Fujairah Oil Industrial Zone (FOIZ) in the United Arab Emirates decreased by 10 percent in the week ending November 9, 2023, reaching 10.222 million barrels. This decline is the first drop in four weeks and follows a peak level since April 6.
Details of the Reserve Decrease
Heavy distillate reserves, primarily used for ship fuel and electricity generation, decreased by 25 percent to 4.429 million barrels. This reduction marks the first decline in the past four weeks. Additionally, light distillate reserves such as gasoline and naphtha decreased by 17 percent to 2.756 million barrels, which is also the first drop in five weeks.
Read more: Middle East crude oil exports reached 85 percent of pre-war capacity
Other Developments in Oil Reserves
Meanwhile, middle distillate reserves, including jet fuel and diesel, increased by 35 percent to 3.037 million barrels, marking the highest level since February 9, 2023. These developments indicate significant changes in consumption and storage patterns of oil products in the Fujairah region.
The market has also reacted to these changes. The price of marine fuel with 0.5 percent sulfur delivered to Fujairah dropped to $803 per ton on November 10, reflecting an 8.2 percent decrease from the previous day and the lowest price since August 28. Additionally, the price of high-sulfur heavy fuel oil also fell to $530 per ton, down 13 percent from November 9 and the lowest price since July 13.
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