Fujairah’s fuel oil inventories drop by 26% this month

Residual fuel oil inventories in Fujairah have averaged 26% lower so far in May compared to April, based on the latest data from Fujairah Oil Industry Zone and S&P Global.

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

• Heavy distillate and residual stocks down 1 million bbls to 2.86 million bbls
• Middle distillate stocks down 67,000 bbls to 1.15 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 recorded fuel oil imports of just 10,000 b/d so far this month, following zero imports in April, according to cargo tracking data from Vortexa. All incoming volumes originated from Iran. Fuel oil imports have been steadily declining since March amid the ongoing Middle East crisis, with imports standing at only 14,000 b/d during that month.

Fuel oil exports from Fujairah have also plunged by 151,000 b/d to a mere 4,000 b/d, with the entire export volume destined for Singapore.

Middle distillate inventories in Fujairah have likewise weakened, averaging 6% lower than last month’s levels.

“Middle Eastern ports are currently active and operational overall, with bunkering running normally across the region, although there are occasional periods of tension from time to time,” a regional source said.

Bunker availability in Fujairah remains tight for now, with all offers subject to firm enquiry. Demand has fallen sharply as many vessels continue to wait for transit through the Strait of Hormuz. According to a trader, some suppliers still have product available in the port, while others have run dry as imports have nearly come to a standstill.

“Supplies taking place as normal and some terminals remain closed for maintenance,” a trader added.

By Tuhin Roy

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