Fujairah fuel oil inventories hit highest level since March

Fujairah’s fuel oil stocks have averaged 43% higher in the first week of September than across August, Fujairah Oil Industry Zone (FOIZ) and S&P Global data shows.

Changes in monthly average Fujairah stocks from August to September (so far):

• Heavy distillate and residual stocks up 1.70 million bbls to 5.63 million bbls
• Middle distillate stocks up 743,000 bbls to 2.29 million bbls

Fujairah’s combined heavy distillate and residual fuel oil inventories have risen above 5 million bbls so far this month, reaching their highest level since March.

Fuel oil imports into the UAE’s key bunker hub have surged to 146,000 b/d so far this month, up sharply from just 30,000 b/d in August, according to cargo tracker Vortexa. Russia accounted for 38% of the imports, followed by Iran (26%) and Iraq (15%). Russia has overtaken Saudi Arabia as Fujairah’s largest fuel oil supplier this month, after Saudi Arabia was the main source of imports in July and August.

At the same time, Fujairah’s fuel oil exports have jumped by 439,000 b/d to 745,000 b/d so far this month, turning Fujairah into a net exporter. Saudi Arabia received 25% of the exports, while Oman accounted for 24%, followed by Singapore (13%).

Middle distillate inventories have also increased, averaging 48% higher than last month.

US-Iran tensions over the Strait of Hormuz continue to disrupt bunker fuel availability in Fujairah, with supplies of all major grades are described as “super tight”.

By Tuhin Roy

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