Oil stocks in the UAE recorded a historic drop due to reduced Iraqi supplies. Industry sources reported that inventories at the Fujairah port reached their lowest levels ever, highlighting the impact of Iraq’s declining fuel oil shipments. This trend has already triggered concerns among energy analysts and regional traders.
The fall in UAE oil stocks reflects a sharp drop in fuel oil flows from Iraq. Shipments averaged only 43,000 barrels per day, which marked the weakest performance in years. As a result, the overall availability of oil products in the UAE faced serious pressure. Traders now expect tighter supplies to continue shaping the market in the near term.
Moreover, middle distillates such as jet fuel and diesel recorded notable declines. Stocks fell by 24 percent, reaching around 1.65 million barrels. This level marked the lowest in several weeks, and it also showed a 16 percent drop compared to the start of the year. Therefore, energy companies are preparing for continued market volatility.
At the same time, light distillates also registered losses. Gasoline and naphtha reserves slipped by 10 percent, falling to nearly 6.05 million barrels. These numbers suggest that both domestic demand and regional consumption remain strong. Consequently, market observers believe the UAE will continue to feel the pressure of lower supplies from Iraq.
The record plunge in UAE oil stocks demonstrates the interconnected nature of regional energy markets. Iraqi supplies play a major role in maintaining balanced stockpiles across the Gulf. When flows decline, immediate effects appear in inventory levels, and traders must adjust their strategies. Additionally, such shortages often influence global energy prices, as reduced supply supports stronger price trends.
Looking ahead, market experts underline the need for stronger supply stability. They stress that the UAE must explore ways to diversify sources and enhance storage strategies. With Iraq facing ongoing production challenges, Gulf nations may need to coordinate further to secure consistent supplies.
The drop in UAE oil stocks underscores the vulnerability of regional markets to sudden supply disruptions. Every reduction in Iraqi flows directly influences energy balances across the Gulf. Therefore, policymakers and traders must remain alert to new challenges while planning long-term strategies.