ARA fuel oil stocks gain 13% in June

The ARA’s independently held fuel oil stocks rose 13% in June, compared to May’s monthly average, according to Insights Global data.

Changes in monthly average ARA stocks from May to June:

• Fuel oil stocks up 450,000 bbls at 4.08 million bbls
• Gasoil stocks down 80,000 bbls to 13.54 million bbls

Fuel oil stocks have rebounded, compared to May when the stocks were at their lowest levels recorded in more than a decade.

The region’s independent gasoil inventories - which include diesel and heating oil – have dropped 1% in June, compared to May, according to the Insights Global data. Gasoil inventories are at their lowest level in around two and a half years.

Early July flows have been much slower, however. The ARA hub has imported only 52,000 b/d of fuel oil in the first two days of July, with all cargoes coming from Tunisia, down from June’s monthly average of 215,000 b/d, according to Vortexa cargo data.

No fuel oil was exported from the ARA in July, Vortexa data showed.

Meanwhile, region has imported 102,000 b/d of gasoil in July so far, down from 188,000 b/d imported in June, Vortexa data said. July’s shipments came from France (56%) and the United Kingdom (44%)

Bunker fuel availability is tight for prompt supplies, with buyers advised around seven days of notice to get VLSFO and HSFO stems, and around five days for LSMGO deliveries, a trader said.

By Nachiket Tekawade

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