Fujairah’s fuel oil inventories drawn 29% in August

Fujairah’s fuel oil inventories averaged 29% lower in August than in July, Fujairah Oil Industry Zone (FOIZ) and S&P Global data show.

Changes in monthly average Fujairah stocks from July to August:

• Heavy distillate and residual stocks down 1.61 million bbls to 3.93 million bbls
• Middle distillate stocks up 165,000 bbls to 1.54 million bbls

Fuel oil inventories at the UAE’s Port of Fujairah have fallen below 4 million bbls after rising for two consecutive months.

Fuel oil imports into Fujairah declined to around 30,000 b/d in August from 51,000 b/d in July, according to cargo tracker Vortexa. At the same time, exports surged by 138,000 b/d to 306,000 b/d, turning Fujairah into a net exporter and contributing to the inventory drawdown.

Saudi Arabia (64%) and Bahrain (35%) accounted for the bulk of Fujairah’s fuel oil imports in August. Singapore (48%) was the largest destination for exports, followed by China (26%) and the US (13%).

Meanwhile, Fujairah’s middle distillate inventories increased 12% above July levels on average. 

Renewed US-Iran tensions around the Strait of Hormuz continue to weigh on bunker fuel availability in Fujairah. VLSFO and LSMGO supply remains tight and largely unchanged from last week, with only a limited number of suppliers able to offer LSMGO. HSFO availability also remains restricted.

By Tuhin Roy

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