ARA fuel oil stocks climb 15% in August

The ARA's independently held fuel oil stocks have averaged 15% higher in August thus far, compared to July's monthly average, according to Insights Global data.

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

• Fuel oil stocks up around 591,000 bbls to 4.62 million bbls
• Gasoil stocks down around 167,000 bbls to 12.07 million bbls

Fuel oil stocks have increased by around 28% from May, when they hit their lowest level in more than a decade. However, inventories remain 29% below February levels, before the conflict broke out in the Middle East.

The ARA hub has imported around 344,000 b/d of fuel oil in August thus far, more than double July's monthly average of around 159,000 b/d, according to Vortexa cargo flows data.

The largest volumes arrived from Benin (20%), Venezuela (15%) and Mexico (8%).

Meanwhile, the region has exported around 141,000 b/d of fuel oil so far this month, down from around 175,000 b/d in July, mainly for unloading in Malaysia (26%), Singapore (25%) and Spain (18%).

The region's independent gasoil inventories - which include diesel and heating oil - have dropped by 1% in August so far, compared to July, according to the Insights Global data. Gasoil inventories have dropped to their lowest level in four years.

The region has imported around 156,000 b/d of gasoil in August thus far, up from an average of around 119,000 b/d imported in July, according to Vortexa data. A majority of shipments arrived from the US (36%), Sweden (12%) and the UK (10%).

Fuel availability remains tight for prompt deliveries in the ARA bunkering hub, with buyers recommended lead times of 5-7 days to get good coverage from suppliers, a trader told ENGINE. Traders have reported slow bunker demand in the area.

By Nachiket Tekawade

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