Fujairah’s fuel oil stocks fall 9% so far this month

Fujairah’s residual fuel oil inventories have averaged 9% lower so far this month compared to May, according to the latest data from Fujairah Oil Industry Zone (FOIZ) and S&P Global.

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

• Heavy distillate and residual stocks down 230,000 bbls to 2.24 million bbls
• Middle distillate stocks up 150,000 bbls to 1.31 million bbls

Heavy distillate and residual fuel oil inventories in Fujairah have fallen below 3 million bbls, marking multi-year lows.

The Middle Eastern bunkering hub has imported around 19,000 b/d of fuel oil so far this month, up from approximately 7,000 b/d in May, according to cargo tracker Vortexa. Iraq remained the sole source of imports, accounting for 100% of the total volumes received.

In contrast, fuel oil exports have surged by 351,000 b/d to 383,000 b/d this month so far, transforming Fujairah into a net fuel oil exporter.

Meanwhile, middle distillate inventories in Fujairah have moved in the opposite direction, averaging 13% higher than last month's levels.

Bunker fuel availability has tightened significantly in Fujairah, with only a limited number of suppliers currently able to offer product. Many suppliers are responding selectively to enquiries and providing quotations only against confirmed purchase requests, according to a Middle East-based trader.

The supply crunch is most pronounced for VLSFO and LSMGO, where only a handful of suppliers continue to hold available stocks. HSFO availability remains comparatively less constrained, although just two suppliers are currently offering the grade.

By Tuhin Roy

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