The ARA’s independently held fuel oil stocks have been reduced by 7% in June so far, according to Insights Global data.

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

• Fuel oil stocks down 480,000 bbls to 6.69 million bbls
• Gasoil stocks down 622,000 bbls to 15.32 million bbls

At 6.69 million bbls, the region’s fuel oil stocks are at their lowest average this year and about 31% lower than the same period last year.

Prompt bunker availability remains tight in the ARA hub for all grades, a trader told ENGINE. Recommended lead times for VLSFO and LSMGO have shortened to 7-8 days, while HSFO's remain consistent with last week, at 8-9 days.

The region has imported 82,000 b/d of fuel oil in June so far, a significant decline compared from May’s 176,000 b/d, according to data from cargo tracker Vortexa. 

The ARA has imported just under half of its fuel oil from the US and UK, followed by Germany (19%) and Sweden (13%).

The ARA hub has exported 123,000 b/d of fuel oil this month, a significant decrease from the 211,000 b/d of fuel oil exported in May. Fuel oil cargo volumes have mostly departed for Russia (23%) and Spain (18%).

The region’s independent gasoil inventories - which include diesel and heating oil – have sunk by 4% in June compared to May. The ARA hub has imported a total of 147,000 b/d of gasoil and diesel in June, recording a considerable decrease from May’s 315,000 b/d, Vortexa data shows.

India is the region's top import source for gasoil and diesel, at 23%. Cargo volumes have also arrived from the US (17%) and Finland (14%).

By Samantha Shaji

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