Fujairah Energy Data Committee

“ Fujairah Energy Data Committee [ FEDCom ], established under the aegis of FOIZ entered into an agreement with S & P Global Platts to publish data comprising of weekly inventory levels of various terminals established within FOIZ. Working closely with S&P Global Platts and industry players in the region, Fujairah has enhanced market transparency by providing storage data for light, middle and heavy distillates and residues. ”

“ From January 2017, the weekly inventory levels have been published and made available to public and market participants. The weekly oil inventory data is an aggregate breakdown of fuel oil, residuals, middle distillates and light ends. The visibility provided by publication of this data is a key ingredient of successful liquid trading centers around the world and helps reduce market opacity, enabling traders and investors to see opportunities and develop cohesive risk-aware strategies. ”

“ As has remained noticeable in other global hubs, providing greater transparency is a decisive step to achieve higher trading liquidity (whether in paper or physical markets) and supporting local business activities. To supplement its prominence as a critical trading hub, it became as much important to conceive aspects of transparency to bolster confidence within the participants so as to allow them to identify opportunities yet manage the potential risks. ”

“ From February 2018, S & P Global Platts in collaboration with FOIZ / FEDCom deployed a proprietary, highly secure Blockchain network to allow market participants to submit weekly inventory oil storage data to Fujairah Oil Industry Zone (FOIZ) and the regulator, FEDCom. This offers FOIZ and its terminal operators security together with ease of use and a full audit trail to collate weekly inventory oil products storage data. ”

“ Publishing of weekly oil inventory data employing a full commercial deployment of Blockchain ledger technology represents a first for oil markets – this technology more broadly helps to improve efficiency and manage risk in a secure environment. ”

“ Data clarity lies at the core of accurate supply-demand outlooks, understanding trends in market prices, the movement of oil products and in attracting energy investors. Furthermore, another objective of publishing the weekly inventory data is to set targets, including establishing Fujairah as the region pricing centre next to Singapore and Rotterdam – this aspect is gaining momentum and bolstering stakeholders' confidence day-by-day. ”

“ These efforts also reflect the UAE’s progressive attitude to data transparency, all in conformance with the UAE National Vision 2021. ”