ARA fuel oil stocks stable in June so far

The ARA’s independently held fuel oil stocks remain unchanged in June so far, compared to May’s monthly average, according to Insights Global data.

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

• Fuel oil stocks down 10,000 bbls at 3.62 million bbls
• Gasoil stocks down 70,000 bbls to 13.56 million bbls

Fuel oil stocks in the ARA hub remain almost equal to May’s inventory levels, which were the lowest seen in more than a decade.

The ARA hub has imported 172,000 b/d of fuel oil in the first week of June, lower from May’s monthly average of 230,000 b/d, according to data from cargo tracker Vortexa. Around 48% imports came from Venzuela, while U.S. Virgin Islands sent around 14% of the June cargoes.

Meanwhile, ARA has exported around 229,000 b/d of fuel oil in June till date, up from 191,000 b/d in May. Most shipments left for Russia (28%), U.S. (24%) and Singapore (18%).

The region’s independent gasoil inventories - which include diesel and heating oil – have dropped 70,000 bbl this month so far compared to May. Gasoil inventories have fallen to their lowest level in two and a half years.

The ARA hub imported 226,000 b/d of gasoil in June, up from 204,000 b/d imported in May, Vortexa data showed.

Around 33% of June’s shipments have come from the U.S., while Brazil (14%) and Saudi Arabia (12%) have also sent cargoes. Gasoil shipments coming from the Middle East have fallen considerably over the last few months.

Prompt fuel availability in the ARA remains tight. Buyers are recommended longer lead times of around 7-8 days for VLSFO and HSFO, and about six days for LSMGO, a trader said.

By Nachiket Tekawade

Please get in touch with comments or additional info to news@engine.online