ARA fuel oil stocks gain 6% in July so far

The ARA’s independently held fuel oil stocks have increased 6% higher on average 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 260,000 bbls to 4.34 million bbls
• Gasoil stocks down 500,000 bbls to 13.04 million bbls

Fuel oil stocks have increased by around 18% from May, when they recorded their lowest level in more than a decade. However, inventories remain 33% below February levels, before the conflict broke out in the Middle East.

The ARA hub has imported only 109,000 b/d of fuel oil in July so far, a massive dip from June’s monthly average of 215,000 b/d, according to Vortexa cargo data.

Most cargoes have come from Colombia (30%), the Caribbean Netherlands (26%) and Sweden (19%).

The region has exported 136,000 b/d of fuel oil in early July, down from June’s 172,000 b/d. Most cargoes have left for Spain (41%), Saudi Arabia (30%) and Mauritania (11%).

The region’s independent gasoil inventories - which include diesel and heating oil – have dropped by 4% 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 99,000 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 (27%), the UK (22%) and France (14%).

Availability of bunker fuel in Rotterdam is tight for prompt delivery dates, with buyers advised booking stems around 5-7 days ahead to get good coverage, a trader said.

By Nachiket Tekawade

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