ARA fuel oil stocks gain 9% in August so far
The ARA's independently held fuel oil stocks have averaged 9% higher in August so far, compared to July's monthly average, according to Insights Global data.
Changes in monthly average ARA stocks from July to August (so far):
- Fuel oil stocks up 380,000 bbls to 4.41 million bbls
- Gasoil stocks down 340,000 bbls to 11.90 million bbls
Fuel oil stocks have increased by around 22% from May, when they hit their lowest level in more than a decade. However, inventories remain 32% below February levels, before the conflict broke out in the Middle East.
The ARA hub has imported 363,000 b/d of fuel oil in August so far, more than double July's monthly average of 159,000 b/d, according to Vortexa cargo flows data.
Most shipments came from Benin (26%), Venezuela (15%) and France (9%).
Meanwhile, the region has exported 160,000 b/d of fuel oil in August so far, down from July's 175,000 b/d, mainly for unloading in Malaysia (31%), Poland (26%) and Spain (17%).
The region's independent gasoil inventories - which include diesel and heating oil – have dropped by 3% in August so far, compared to July, according to the Insights Global data. Gasoil inventories have dropped to their lowest level in four years.
The region has imported 148,000 b/d of gasoil in August so far, up from an average of 119,000 b/d imported in July, according to Vortexa data. A majority of shipments arrived from the US (34%), Sweden (17%) and Nigeria (10%).
Prompt fuel availability is tight in the ARA, and buyers are advised lead times of between 5-7 days to get competitive offers from a wide selection of suppliers, a trader told ENGINE.
In Rotterdam, HSFO and LSMGO bunker prices have gained around 9% and 8%, respectively, over the past month, while VLSFO's price has declined by around 2% over the same period, according to ENGINE data.
By Nachiket Tekawade
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