Fujairah’s fuel oil inventories plunge 26% this month

Fujairah’s residual fuel oil inventories have averaged 26% lower so far this month compared to March, based on the latest data from the Fujairah Oil Industry Zone (FOIZ) and S&P Global.

Changes in monthly average Fujairah stocks from February to March (so far):

• Heavy distillate and residual stocks down 2.07 million bbls to 5.96 million bbls
• Middle distillate stocks down 929,000 bbls to 2.06 million bbls

Fujairah’s heavy distillate and residual fuel oil inventories have slipped below 6 million bbls, marking multi-year lows.

The Middle Eastern bunker hub has imported just 38,000 b/d of fuel oil so far this month, down sharply from 218,000 b/d in February, according to cargo tracker Vortexa. Of these imports, the bulk has come from Iran (87%), followed by Iraq (9%).

On the export side, Fujairah’s fuel oil exports have dropped by 169,000 b/d to 51,000 b/d, with most volumes heading to Malaysia (67%), Mauritius (22%) and Singapore (6%).

Middle distillate inventories in Fujairah have also declined, averaging 31% lower than last month.

Fuel availability across all grades remains tight at the port, with offers largely dependent on firm enquiries, a trader said.

By Tuhin Roy

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