Fujairah’s fuel oil inventories drawn 35% coming into August

Fujairah’s residual fuel oil inventories have averaged 35% 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 1.95 million bbls to 3.60 million bbls
• Middle distillate stocks up 119,000 bbls to 1.50 million bbls

Fujairah’s heavy distillate and residual fuel oil inventories have fallen below 4 million bbls, after a slight rebound in July.

The Middle Eastern bunker hub has recorded no fuel oil imports so far this month, compared with average imports of around 51,000 b/d in July, according to Vortexa cargo tracking data. Meanwhile, fuel oil exports have increased by 49,000 b/d to 217,000 b/d, turning Fujairah into a net exporter and contributing to the stock drawdown. Malaysia (27%), China (22%) and the US (20%) were the main export destinations.

Fujairah’s middle distillate inventories, meanwhile, have risen and are averaging 9% above last month’s levels.

Renewed tensions between the US and Iran over the Strait of Hormuz continue to put pressure on bunker fuel supply in Fujairah. VLSFO and LSMGO availability remains tight, broadly unchanged from last week, with only a limited number of suppliers able to offer LSMGO. HSFO supply also remains tight.

By Tuhin Roy

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