The ARA’s independently held fuel oil stocks have averaged 3% higher in May thus far, according to Insights Global data.

Changes in monthly average ARA stocks from April to May (so far):

• Fuel oil stocks up 203,000 bbls to 7.22 million bbls
• Gasoil stocks down 111,000 bbls to 15.98 million bbls

At 7.22 million bbls, the region’s fuel oil stocks have started to recover after hitting an 18-month low in April.

The ARA hub continues to see tight prompt bunker availability of all fuel grades. Despite a slight recovery, residual fuel oil stocks in the ARA are way below their five-year average for the time of year.

The region has imported 181,000 b/d of fuel oil in May so far, a decrease compared to April’s 198,000 b/d, according to data from cargo tracker Vortexa. 

Saudi Arabia has emerged as the region’s topmost import source, with 26% of the total share. Other import sources include the UAE (21%), Poland (16%) and Denmark (12%).

The ARA hub has exported 162,000 b/d of fuel oil this month so far, a fall from the 212,000 b/d of fuel oil exported in April. Fuel oil cargoes have departed for Spain (30%), the US (29%) and South Africa (26%).

Independent gasoil inventories - which include diesel and heating oil – have averaged 1% lower in April. The ARA hub has imported a total of 319,000 b/d in May thus far, a significant rise from last month’s 202,000 b/d, Vortexa data shows.

At 33%, Saudi Arabia retains its position as the region's top import source for gasoil and diesel. Cargo volumes have also arrived from the UAE (23%) and the US (19%).

By Samantha Shaji

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