Fujairah’s fuel oil inventories decline 17% coming into June

Fujairah’s residual fuel oil inventories have averaged 17% lower so far this month compared to May, according to the latest data from Fujairah Oil Industry Zone (FOIZ) and S&P Global.

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

• Heavy distillate and residual stocks down 414,000 bbls to 2.05 million bbls
• Middle distillate stocks up 109,000 bbls to 1.29 million bbls

Heavy distillate and residual fuel oil inventories in Fujairah have dropped below 3 million bbls, reaching multi-year lows.

The Middle Eastern bunker hub has not received any fuel oil imports so far this month, compared with average imports of around 7,000 b/d in May, according to cargo tracking data from Vortexa. At the same time, fuel oil exports have jumped by 196,000 b/d to 228,000 b/d, turning Fujairah into a net exporter. Iraq was the primary export destination, accounting for 73% of total exports, while Pakistan received the remaining 27%.

Meanwhile, Fujairah’s middle distillate inventories have increased and are averaging 9% above last month’s levels.

Bunker fuel availability at Fujairah has tightened significantly. Only a handful of suppliers are currently offering fuel, with many responding to enquiries on a selective basis, according to a trader.

For VLSFO and LSMGO, only one supplier is understood to have prompt availability, while most price indications are being provided only against firm enquiries. HSFO supply is somewhat less restricted, with two suppliers currently able to offer the grade.

By Tuhin Roy

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