ARA fuel oil stocks drop 2% in February

The ARA’s independently held fuel oil stocks have dipped 2% in February till date compared to January, according to Insights Global data.

Changes in monthly average ARA stocks from January to February (so far):

• Fuel oil stocks down 130,000 bbls to 6.81 million bbls
• Gasoil stocks up 820,000 bbls to 16.11 million bbls

The region has imported 220,000 b/d of fuel oil in February so far, rising slightly from the 215,000 b/d imported in January, according to cargo tracker Vortexa.

Shipments have arrived from Nigeria (15%), France, Venezuela and Lithuania (13%).

The ARA exported 152,000 b/d of fuel oil in February, lower than the 160,000 b/d shipped in January. Around 66% of the cargoes departed for Singapore, while Spain also took around 11% of the supplies.

The region’s independent gasoil inventories - which include diesel and heating oil – rose 5% in February so far, compared to last month, according to the Insights Global data.

The ARA imported 273,000 b/d of gasoil in February so far, significantly more than the 206,000 b/d imported in January, according to Vortexa data. Saudi Arabia (21%), Kuwait (16%) and the U.S. (15%) have been the biggest contributors.

Securing prompt supplies of VLSFO and LSMGO at the ARA bunkering hub remains challenging, with suppliers recommending lead times of around 5–7 days for both grades, a trader said. HSFO availability is comparatively better, with deliveries possible on shorter notice of about 2–4 days, the trader added.

By Nachiket Tekawade

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