Fujairah’s fuel oil inventories increase by 15% in June

Fujairah’s fuel oil stocks have averaged 15% higher so far in June than across May, Fujairah Oil Industry Zone (FOIZ) and S&P Global data shows.

Changes in monthly average Fujairah stocks from May to June (so far):

• Heavy distillate and residual stocks up 366,000 bbls to 2.83 million bbls
• Middle distillate stocks up 187,000 bbls to 1.35 million bbls

Fujairah's heavy distillate and residual fuel oil inventories have recorded their first increase this year, rebounding from the multi-year low of 2.47 million bbls recorded in May.

Fuel oil imports into the UAE bunker hub have climbed to 39,000 b/d so far this month, up from just 7,000 b/d in May, according to cargo tracker Vortexa. The recovery marks a reversal of the steady decline seen since March, when imports averaged 14,000 b/d, before dropping to zero in April and recovering only marginally in May. The improvement follows the signing of a memorandum of understanding between Iran and the US, which includes the reopening of the Strait of Hormuz.

Fuel oil exports have also surged, rising by 165,000 b/d to 197,000 b/d so far this month. Iraq accounted for nearly half of Fujairah's total fuel oil imports, while India received 32% of exports and Pakistan took 29%.

Middle distillate inventories have also increased, averaging 16% higher than last month.

Bunker fuel availability has improved alongside the stock build. Most suppliers in Fujairah can now offer prompt VLSFO stems, while a smaller number have LSMGO available. HSFO availability has also improved, with some suppliers able to provide the grade.

By Tuhin Roy

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