The ARA’s independently held fuel oil stocks have dropped by 5% in July so far, according to Insights Global data.

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

• Fuel oil stocks down 360,000 bbls to 6.31 million bbls
• Gasoil stocks down 1.06 million bbls to 13.82 million bbls

At 6.31 million bbls, fuel oil stocks at the ARA hub are at their lowest monthly average so far this year.

Prompt supply remains strained at the ports, with traders recommending lead times of 9-10 days for HSFO and LSMGO, and 5-6 days for VLSFO.

The region has imported 211,000 b/d of fuel oil in July thus far, a significant rise from June’s 133,000 b/d, according to data from cargo tracker Vortexa. 

France has accounted for about 19% of the region's total fuel oil imports so far this month. Other key sources include the UK (16%), Portugal (13%) and the US (10%).

The region has exported 92,000 b/d of fuel oil in July thus far, considerably lesser than 174,000 b/d in June, according to Vortexa data. 

The largest share of shipments has gone to Brazil (31%), followed by Singapore (16%) and Spain (11%).

The region’s independent gasoil inventories - which include diesel and heating oil – have fallen by 7% in July so far, compared to June. The ARA hub has imported a total of 136,000 b/d so far this month, a decrease from June’s 164,000 b/d, Vortexa data noted.

Qatar alone has accounted for 30% of all imports. Cargoes have also arrived from the US and Germany (15% each).

By Nachiket Tekawade

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