Fujairah’s fuel oil stocks fell 36% in May

Fujairah’s fuel oil inventories averaged 36% lower in May than in April, Fujairah Oil Industry Zone (FOIZ) and S&P Global data show.

Changes in monthly average Fujairah stocks from April to May:

• Heavy distillate and residual stocks down 1.39 million bbls to 2.47 million bbls
• Middle distillate stocks down 57,000 bbls to 1.16 million bbls

Fuel oil inventories at the UAE’s Port of Fujairah have dropped below 3 million bbls, marking multi-year lows.

Fuel oil imports into Fujairah have been on a steady downward trend since March, amid ongoing tensions in the Middle East. Imports averaged 14,000 b/d in March, fell to zero in April and recovered only slightly to 7,000 b/d in May. During the same period, exports from the region’s key bunker hub also declined sharply, falling by 123,000 b/d to 32,000 b/d, according to cargo tracking firm Vortexa.

All fuel oil imports into Fujairah in May originated from Iran (100%). On the export side, Pakistan (88%) and Singapore (12%) accounted for the entirety of outbound volumes.

Fujairah’s middle distillate inventories also moved lower, averaging 5% below April levels.

Bunker fuel availability in Fujairah has tightened significantly, with only a small number of suppliers actively marketing fuel and many responding to enquiries selectively, according to a market source.

Supply pressures are most pronounced in the VLSFO and LSMGO segments, where only one supplier is currently understood to hold available stocks. As a result, most offers for these grades are being issued only against firm enquiries. HSFO availability is comparatively less constrained, with two suppliers currently able to provide the grade.

By Tuhin Roy

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