Fujairah’s fuel oil stocks slump amid higher exports

Fujairah’s residual fuel oil inventories have averaged 24% lower so far this month compared to July, according to the latest data from Fujairah Oil Industry Zone (FOIZ) and S&P Global.

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

• Heavy distillate and residual stocks down 1.34 million bbls to 4.20 million bbls
• Middle distillate stocks up 99,000 bbls to 1.48 million bbls

Fujairah’s heavy distillate and residual fuel oil inventories have fallen below 5 million bbls, following a slight rebound in July.

Fuel oil imports into the UAE’s bunker hub have declined to 27,000 b/d this month, from around 51,000 b/d in July, according to cargo tracker Vortexa. Saudi Arabia (55%) and Bahrain (45%) accounted for all imports. Meanwhile, fuel oil exports have risen significantly by 134,000 b/d to 302,000 b/d, turning Fujairah into a net exporter and contributing to the drawdown in inventories. Singapore (26%), Saudi Arabia (22%) and the US (15%) were the main export destinations.

Fujairah’s middle distillate inventories, meanwhile, have increased and are averaging 7% above last month’s levels.

Tensions between the US and Iran around the Strait of Hormuz continue to constrain bunker fuel supply in Fujairah. VLSFO and LSMGO availability remains tight and broadly unchanged from last week, with only a limited number of suppliers able to offer LSMGO. HSFO supply also remains restricted.

By Tuhin Roy

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