Fujairah’s fuel oil inventories rise massively this month

Fujairah’s fuel oil stocks have averaged 111% higher so far this month than across June, Fujairah Oil Industry Zone (FOIZ) and S&P Global data shows.

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

• Heavy distillate and residual stocks up 3.84 million bbls to 7.29 million bbls
• Middle distillate stocks down 209,000 bbls to 1.76 million bbls

Fujairah's heavy distillate and residual fuel oil inventories have risen above 7 million bbls so far this month, reaching their highest level since February.

Fuel oil imports into the UAE bunker hub have surged to 59,000 b/d so far this month, up from just 3,000 b/d in June, according to cargo tracker Vortexa. Iraq accounted for 52% of the imports, while Saudi Arabia supplied the remaining 48%.

Meanwhile, fuel oil exports have fallen by 141,000 b/d to 45,000 b/d so far this month. The decline has shifted Fujairah's trade balance into a net import surplus, contributing to the stock build. Singapore received the largest share (56%) of Fujairah's fuel oil exports, followed by Pakistan (20%) and Bahrain (19%).

In contrast, middle distillate inventories have declined, averaging 15% lower than last month.

Despite escalating US-Iran hostilities in the Strait of Hormuz, bunker fuel availability has improved in Fujairah. Supplies of VLSFO and LSMGO have eased, with several suppliers now able to accommodate prompt delivery requests. HSFO availability, however, has tightened and is largely offered on a firm enquiry basis.

By Tuhin Roy

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