ARA fuel oil stocks drop 17% in May
The ARA’s independently held fuel oil stocks have averaged 17% lower in May than in April, according to Insights Global data.
Changes in monthly average ARA stocks from April to May:
- Fuel oil stocks down 740,000 bbls to 3.62 million bbls
- Gasoil stocks down 900,000 bbls to 13.63 million bbls
Fuel oil stocks have fallen to levels not seen in more than a decade. The fuel oil stock average in May was 44% less than in February, which was the month before the war started in the Middle East.
The ARA hub has imported 279,000 b/d of fuel oil in May, rising from April’s 207,000 b/d, according to data from cargo tracker Vortexa.
Most of May’s supplies has arrived from Caribbean Netherlands (16%), Benin (12%) and Nigeria (11%).
The region exported 201,000 b/d of fuel oil this month, up from 134,000 b/d in April. Most cargoes departed to the U.S. (19%), the U.K. (18%), Singapore (16%) and Spain (15%).
The region’s independent gasoil inventories - which include diesel and heating oil – have averaged 6% lower this month than in April. Gasoil inventories have fallen to their lowest in nearly two and a half years.
The ARA hub imported 204,000 b/d of gasoil in May, up significantly from 143,000 b/d in April, Vortexa data showed.
Around 48% of May’s shipments has come from the U.S., while Saudi Arabia (13%) and the U.K. (8%) were some of the other major contributors.
Prompt bunker availability in the ARA has tightened in the past few weeks. Buyers are recommended longer lead times of around 10 days for VLSFO and HSFO, and about six days for LSMGO, a trader said.
Disruption in the Strait of Hormuz has complicated availability of blending components, bunker supplier Peninsula told ENGINE. This has impacted the ability to consistently produce on-spec marine fuels.
By Nachiket Tekawade
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