ARA fuel oil stocks climb 6% as October kicks off
The ARA’s independently held fuel oil stocks have averaged 6% higher in October so far, compared to September’s monthly average, according to Insights Global data.
Changes in monthly average ARA stocks from September to October (so far):
- Fuel oil stocks up 310,000 bbls to 5.78 million bbls
- Gasoil stocks up 734,000 bbls to 13.32 million bbls
Fuel oil stocks have increased by 60% from May, when they hit their lowest level in more than a decade. Inventories are now 11% below February levels, the month before conflict broke out in the Middle East and disrupted oil and gas flows through the Strait of Hormuz.
The ARA hub has imported 250,000 b/d of fuel oil in October so far, down from September’s 266,000 b/d, according to Vortexa cargo flows data.
Most cargo volumes have come from Lithuania (25%), Mexico (18%) and France (16%).
Meanwhile, the region has exported 111,000 b/d of fuel oil in October so far, down from 177,000 b/d in September, mainly for unloading in Spain (32%), Guinea (11%) and Sweden (9%).
The region’s independent gasoil inventories - which include diesel and heating oil - have gained 6% in October so far, compared to September, according to the Insights Global data.
The region has imported 233,000 b/d of gasoil in October so far, up from 197,000 b/d in September, according to Vortexa data. Most of the volumes have arrived from Germany (41%), India (27%) and the UK (21%).
Bunker availability is tight for prompt supplies in the ARA hub, with buyers advising lead times of 5-7 days to get good coverage from suppliers, a trader told ENGINE.
By Nachiket Tekawade
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