Fujairah's fuel oil stocks double

Fujairah’s fuel oil stocks bounced back to average 98% 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 3.37 million bbls to 6.81 million bbls
• Middle distillate stocks down 99,000 bbls to 1.29 million bbls

Fujairah's combined heavy distillate and residual fuel oil inventories have averaged above 6 million bbls this month, reaching their highest level since February.

Fuel oil imports into the UAE bunker hub have surged to 115,000 b/d so far this month, up sharply from just 3,000 b/d in June, according to cargo tracker Vortexa. Saudi Arabia has been the source of most of the imports (51%), followed by Iraq (27%) and Russia (22%).

Meanwhile, Fujairah's fuel oil exports have dropped by 69,000 b/d to 117,000 b/d so far this month. Singapore has remained the biggest destination, receiving 74% of Fujairah's fuel oil exports, followed by Australia (13%) and Malaysia (5%).

In contrast, Fujairah's middle distillate inventories have declined, averaging 7% lower than last month.

Despite escalating US-Iran hostilities in the Strait of Hormuz, bunker fuel availability in Fujairah has improved. Supply tightness for VLSFO and LSMGO has eased, while HSFO availability has tightened and is now largely being offered only on a firm enquiry basis.

By Tuhin Roy

Please get in touch with comments or additional info to news@engine.online