ARA fuel oil stocks climb down 1% in July
The ARA's independently held fuel oil stocks have averaged 1% lower in July, compared to June's monthly average, according to Insights Global data.
Changes in monthly average ARA stocks from June to July:
- Fuel oil stocks down 50,000 bbls to 4.03 million bbls
- Gasoil stocks down 1.3 million bbls to 12.24 million bbls
Fuel oil stocks have increased by around 11% from May, when they recorded their lowest level in more than a decade. However, inventories remain 38% below February levels, before the conflict broke out in the Middle East.
The ARA hub has imported only 161,000 b/d of fuel oil in July, a sharp drop from June's monthly average of 215,000 b/d, according to Vortexa cargo data.
Shipments arrived from Syria (28%), France (17%) and Sweden (13%), among other countries.
The region has exported 170,000 b/d of fuel oil in July, almost unchanged from June’s 172,000 b/d. Cargoes were unloaded in Singapore (21%), Spain (16%) and Egypt (13%), among other locations.
The region's independent gasoil inventories - which include diesel and heating oil – have dropped by 10% in July, compared to June, according to the Insights Global data. Gasoil inventories have dropped to their lowest level in nearly four years.
The region has imported 129,000 b/d of gasoil in July, down considerably from 188,000 b/d imported in June, according to Vortexa data. Most of these shipments have come from Sweden (24%), the UK (16%) and the US (13%).
Availability of bunker fuel in Rotterdam is tight for prompt delivery dates, with buyers advised lead times of around 5-7 days to secure supplies of any fuel grades, a trader said.
HSFO and VLSFO bunker prices have fallen around 12% and 16% in the last month, respectively, while LSMGO's price has slumped around 39% in the same duration.
By Nachiket Tekawade
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