Fujairah’s fuel oil inventories surged this month

Fujairah’s fuel oil stocks have averaged 74% higher so far in July 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 2.54 million bbls to 5.98 million bbls
• Middle distillate stocks down 60,000 bbls to 1.33 million bbls

Despite the rise, Fujairah's heavy distillate and residual fuel oil inventories have dropped below 6 million bbls so far this month.

Fuel oil imports into the UAE bunker hub have climbed sharply to 69,000 b/d this month, from just 3,000 b/d in June, according to cargo tracker Vortexa. Saudi Arabia supplied the largest share of imports at 43%, followed by Iraq with 27% and Russia with 20%.

Fuel oil exports, meanwhile, have edged up by 5,000 b/d to 191,000 b/d so far this month. The increase has pushed Fujairah into a net fuel oil export position, helping drive the inventory draw. Singapore remained the top export destination, taking 66% of volumes, while Malaysia and Oman accounted for 11% and 8%, respectively.

Middle distillate inventories have also weakened, averaging 4% lower than last month's levels.

Bunker fuel availability in Fujairah has tightened further amid renewed US-Iran hostilities in the Strait of Hormuz. VLSFO and LSMGO supplies are more restricted than they were last week, when prompt deliveries were still achievable. Only a limited number of suppliers are offering LSMGO, while HSFO availability remains tight and is generally provided only on a firm enquiry basis.

By Tuhin Roy

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