ARA fuel oil stocks drop 15% in May
The ARA’s independently held fuel oil stocks have averaged 15% lower so far in May than in April, according to Insights Global data.
Changes in monthly average ARA stocks from April to May (so far):
- Fuel oil stocks down 670,000 bbls to 3.70 million bbls
- Gasoil stocks down 920,000 bbls to 13.60 million bbls
The fuel oil stocks have fallen to their lowest level, levels unseen in more than a decade.
The ARA hub has imported 254,000 b/d of fuel oil in May thus far, rising from April’s 207,000 b/d, according to data from cargo tracker Vortexa.
Most cargoes arrived from Benin (18%), Estonia (12%) and Lithuania (10%).
The region has exported 146,000 b/d of fuel oil so far this month, up from 134,000 b/d in April. Majority of the fuel oil shipments have gone to the U.S. (30%), Spain (28%) and United Kingdom (23%).
The region’s independent gasoil inventories - which include diesel and heating oil – have averaged 6% lower this month than in April. Gasoil inventories have fallen to their lowest in nearly two and a half years.
The ARA hub has imported 236,000 b/d of gasoil in May so far, up significantly from 143,000 b/d in March, Vortexa data showed.
The U.S. (49%), Saudi Arabia (15%) and Germany (9%) were the top suppliers this month.
Availability of VLSFO and HSFO has tightened in the ARA bunkering hub in the last week, with recommended lead times doubling to around 10 days, a trader told ENGINE. LSMGO deliveries need a shorter notice of around six days, the trader added.
By Nachiket Tekawade
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