Fujairah’s fuel oil stocks slump 21% in February

Fujairah’s fuel oil inventories averaged 21% lower in February than in January, Fujairah Oil Industry Zone (FOIZ) and S&P Global data show.

Changes in monthly average Fujairah stocks from January to February:

• Heavy distillate and residual stocks down 2.19 million bbls to 8.03 million bbls
• Middle distillate stocks up 31,000 bbls to 2.99 million bbls

Fuel oil inventories at the UAE port of Fujairah fell below 9 million bbls, marking their lowest level since October.

Fuel oil imports averaged 218,000 b/d in February, a sharp decline from 305,000 b/d in January, according to cargo-tracking data from Vortexa. In contrast, fuel oil exports from the Middle East’s leading bunker hub rose by 104,000 b/d to 220,000 b/d. As a result, Fujairah remained a net exporter of fuel oil during the month.

During February, the majority of Fujairah’s fuel oil imports came from Iran (46%), followed by Iraq (22%) and Brazil (11%). On the export side, most cargoes were shipped to Singapore (73%), while Malaysia (10%) and Kenya (4%) were other key destinations.

Meanwhile, middle distillate inventories at Fujairah edged higher, averaging 1% above January levels.

Several bunker suppliers in Fujairah have also declared force majeure amid heightened security concerns following Iranian strikes across the UAE.

By Tuhin Roy

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