Fujairah fuel oil stocks surge 19% so far in September

Fujairah's fuel oil stocks have averaged 19% higher in September so far 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 760,000 bbls to 4.69 million bbls
• Middle distillate stocks up 790,000 bbls to 2.33 million bbls

Despite the rise, Fujairah's average fuel oil stocks this month remain below July's average of 5.54 million bbls.

Fujairah's fuel oil imports have more than quadrupled, rising by 96,000 b/d from 30,000 b/d in August to 126,000 b/d so far this month, according to cargo tracker Vortexa. Russia accounted for 48% of the imports, followed by Georgia, Bahrain (20%) and Iran (12%). Russia has replaced Saudi Arabia, which was the top source of Fujairah's fuel oil imports in August.

Meanwhile, the port's fuel oil exports have fallen by 44,000 b/d to 262,000 b/d so far this month. Malaysia and Singapore have been the biggest destinations with 22% of the exports, followed by the US (15%) and India (12%). With exports more than double imports, Fujairah remains a net exporter of fuel oil this month.

Fujairah's middle distillate stocks have averaged 51% higher so far this month than in August. The average is the highest since February.

Bunker fuel availability in Fujairah remains severely constrained as ongoing US-Iran tensions continue to disrupt shipping through the Strait of Hormuz. Supply of all major fuel grades is described as “super tight,” while fuel oil imports remain low amid heightened regional uncertainty, a Middle East-based source said.

By Tuhin Roy

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