ARA fuel oil stocks down 17% in early March

The ARA’s independently held fuel oil stocks have slumped 17% in March so far, according to Insights Global data.

Changes in monthly average ARA stocks from February to March thus far:

• Fuel oil stocks down 1.1 million bbls to 5.37 million bbls
• Gasoil stocks down 50,000 bbls to 16.22 million bbls

At 5.37 million bbls, the region’s fuel oil stocks are at their lowest average since January 2022.

The region has imported around 8,000 b/d of fuel oil so far in March, a sharp drop from the 192,000 b/d imported in February, according to cargo tracker Vortexa. All of the March supplies have come from France.

The ARA has exported 201,000 b/d of fuel oil in March till date, slightly lower than the 204,000 b/d shipped in February. A majority of the cargoes have departed for Caribbean Netherlands (37%), Spain (24%) and Sweden (18%).

The region’s independent gasoil inventories - which include diesel and heating oil – have fallen by 50,000 in March so far, compared to February.

The ARA imported 269,000 b/d of gasoil in March so far, down from the 304,000 b/d imported in February, according to Vortexa data. Kuwait has sent more than half of the shipments (52%), while the U.K. (22%) and the U.S. (21%) have also contributed.

Bunker premiums in the ARA hub have surged this week after Brent crude climbed, following the outbreak of a regional conflict in the Middle East. Some sources have indicated lead times ranging anywhere between 5-15 days.

By Nachiket Tekawade

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