Fujairah’s fuel oil inventories surged significantly coming into July

Fujairah’s fuel oil stocks have averaged 112% higher so far in July than across June, Fujairah Oil Industry Zone (FOIZ) and S&P Global data shows.

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

• Heavy distillate and residual stocks up 3.87 million bbls to 7.32 million bbls
• Middle distillate stocks down 149,000 bbls to 1.24 million bbls

Fujairah's combined heavy distillate and residual fuel oil inventories have climbed above 7 million bbls so far this month, reaching their highest level since February.

Fuel oil imports into the UAE bunker hub have surged to 73,000 b/d so far this month from just 3,000 b/d in June, according to cargo tracker Vortexa. Saudi Arabia accounted for 67% of the imports, while Iraq supplied the remaining 33%. Saudi Arabia has overtaken Iraq as Fujairah's largest fuel oil supplier this month. In June, all imports originated from Iraq.

Meanwhile, fuel oil exports have dropped by 94,000 b/d to 92,000 b/d so far this month. Malaysia received 50% of Fujairah's fuel oil exports, followed by Pakistan with 36% and Oman with 8%.

Middle distillate inventories have also declined, averaging 11% lower than last month.

Bunker fuel availability remains mixed in Fujairah. Most suppliers can offer prompt VLSFO stems, while LSMGO availability is more limited. HSFO continues to be relatively tight, although some suppliers are still able to supply the grade.

By Tuhin Roy

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