ARA fuel oil stocks climb 10% in early August
The ARA's independently held fuel oil stocks have averaged 10% higher in August so far, compared to July's monthly average, according to Insights Global data.
Changes in monthly average ARA stocks from July to August (so far):
- Fuel oil stocks up 420,000 bbls to 4.45 million bbls
- Gasoil stocks down 1.05 million bbls to 11.19 million bbls
Fuel oil stocks have increased by around 23% from May, when they hit their lowest level in more than a decade. However, inventories remain 31% below February levels, before the conflict broke out in the Middle East.
The ARA hub has imported 457,000 b/d of fuel oil in the first week of August, a sharp increase from July’s monthly average of 159,000 b/d, according to Vortexa cargo flows data.
Benin contributed to around 35% of early August’s supplies, while significant number of shipments also arrived from Venezuela (19%) and Colombia (17%).
Meanwhile, the region has exported 96,000 b/d of fuel oil in August so far, down from July’s 175,000 b/d. Cargoes mainly departed for Spain (42%) and Russia (16%).
The region's independent gasoil inventories - which include diesel and heating oil – have dropped by 9% in August so far, compared to July, according to the Insights Global data. Gasoil inventories have dropped to their lowest level in just over four years.
The region has imported 228,000 b/d of gasoil in the beginning of August, increasing considerably from an average of 119,000 b/d imported in June, according to Vortexa data. A majority of shipments arrived from US (23%), Sweden (21%) and France (10%).
Bunker availability in the ARA hub is tight for prompt delivery dates, with buyers recommending lead times of around 5-7 days to secure supplies of any fuel grade, a trader said.
In Rotterdam, VLSFO and HSFO bunker prices have increased by around 11% and 18%, respectively, over the past month, while LSMGO price has surged by around 24% over the same period, according to ENGINE data.
By Nachiket Tekawade
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