Fujairah’s fuel oil inventories drawn 15% this month

Fujairah’s residual fuel oil inventories have averaged 15% lower so far this month compared to February, according to the latest data from Fujairah Oil Industry Zone (FOIZ) and S&P Global.

Changes in monthly average Fujairah stocks from February to March (so far):

• Heavy distillate and residual stocks down 1.21 million bbls to 6.82 million bbls
• Middle distillate stocks down 523,000 bbls to 2.47 million bbls

Heavy distillate and residual fuel oil inventories in Fujairah have dropped below 7 million bbls, marking their lowest level since September last year.

Fuel oil inflows into the Middle Eastern bunker hub have been particularly weak this month. Imports have averaged just 37,000 b/d so far, a sharp decline from 218,000 b/d recorded in February, according to cargo tracking data from Vortexa. All of the incoming volumes have originated from Iran.

The composition of these imports has also shifted markedly. While HSFO and LSFO arrived in an 81/19 ratio in February, the balance has fully shifted toward HSFO at 100/0 so far this month.

At the same time, fuel oil exports from Fujairah have fallen by 97,000 b/d to 123,000 b/d. Among export destinations, Malaysia accounted for 62% of shipments, followed by Mauritius with 20%, while Saudi Arabia represented the remaining 18%.

Inventories of middle distillates in Fujairah have also declined, averaging 17% lower than levels seen last month.

By Tuhin Roy

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