ARA fuel oil stocks gain 3% in July so far

The ARA's independently held fuel oil stocks have averaged 3% higher so far in July, compared to June's monthly average, according to Insights Global data.

Changes in monthly average ARA stocks from June to July (so far):

• Fuel oil stocks up 110,000 bbls to 4.18 million bbls
• Gasoil stocks down 760,000 bbls to 12.78 million bbls

Fuel oil stocks have increased by around 15% from May, when they recorded their lowest level in more than a decade. However, inventories remain 35% below February levels, before the conflict broke out in the Middle East.

The ARA hub has imported only 134,000 b/d of fuel oil in July so far, a sharp drop from June's monthly average of 215,000 b/d, according to Vortexa cargo data. Shipments originated from Syria, France (21%) and Colombia (17%) among other countries.

The region has exported 145,000 b/d of fuel oil in early July, down from 172,000 b/d in June. Most cargoes were discharged in Spain (26%), Egypt (19%) and Singapore (17%).

The region's independent gasoil inventories - which include diesel and heating oil – have dropped by 6% in July, compared to June, according to the Insights Global data. Gasoil inventories have dropped to their lowest level in nearly four years.

The region has imported 126,000 b/d of gasoil in July so far, down significantly from 188,000 b/d imported in June, according to Vortexa data. Most of these shipments have come from Sweden (17%), the UK (16%) and Canada (13%).

Availability of bunker fuel in Rotterdam is tight for prompt delivery dates, with buyers advised to book stems around 5-7 days in advance to secure supplies, a trader said.

By Nachiket Tekawade

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