ARA fuel oil stocks gain 8% in June
The ARA’s independently held fuel oil stocks have averaged around 8% higher in the penultimate week of June, compared to May, according to Insights Global data.
Changes in monthly average ARA stocks from May to June (so far):
- Fuel oil stocks up 290,000 bbls at 3.91 million bbls
- Gasoil stocks down 80,000 bbls to 13.55 million bbls
Fuel oil stocks in the ARA hub have gained slightly from May’s inventory levels, which were the lowest seen in more than a decade.
The ARA hub has imported 247,000 b/d of fuel oil in June, slightly higher than May’s monthly average of 230,000 b/d, according to Vortexa’s cargo data.
Most of June’s shipments have come from Syria (16%), Venezuela (15%) and UK (12%).
Meanwhile, ARA has exported around 137,000 b/d of fuel oil in June till date, sharply down from the 191,000 b/d that was shipped in May. Most cargoes left for Singapore (23%), Spain (18%) and the U.S. (16%).
The region’s independent gasoil inventories - which include diesel and heating oil – have dropped 1% in June compared to May. Gasoil inventories are at their lowest level in around two and a half years.
The ARA hub imported 178,000 b/d of gasoil in June, down from 204,000 b/d imported in May, Vortexa data showed.
June’s shipments have come mainly from the U.S (32%), the U.K (19%) and Lithuania (9%).
Bunker fuel availability is very tight in the ARA bunkering hub, a trader said. Lead times of around seven days are recommended for HSFO and VLSFO deliveries, and six days for LSMGO deliveries, the trader added.
By Nachiket Tekawade
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