ARA fuel oil stocks drop 13% in May

The ARA’s independently held fuel oil stocks have averaged 13% lower so far in May than in April, according to Insights Global data.

Changes in monthly average ARA stocks from April to May:

• Fuel oil stocks down 570,000 bbls to 3.80 million bbls
• Gasoil stocks down 1.04 mln bbls to 13.49 million bbls

The fuel oil stocks have fallen to their lowest level in 11 years.

The region’s independent gasoil inventories - which include diesel and heating oil – have averaged 7% lower this month than in April. Gasoil inventories have fallen to their lowest in nearly two years.

Bunker fuel availability of VLSFO and HSFO has tightened in the ARA bunkering hub, with buyers now advised to enquire around 10 days ahead to get good coverage from suppliers, a trader told ENGINE.

Estimated lead times have doubled since last week. Suppliers are facing long loading delays at the terminals, the trader said.

LSMGO deliveries need a shorter notice of around six days, the trader added.

By Nachiket Tekawade

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