Independently held fuel oil stocks in the ARA hub have declined by 6% 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 368,000 bbls to 6.3 million bbls
• Gasoil stocks down 1.24 million bbls to 13.65 million bbls

At 6.3 million bbls, fuel oil stocks at the ARA hub are at their lowest monthly average so far this year.

Fuel availability has improved in the ARA hub. Recommended lead times have reduced to 5-7 days for all grades, unchanged for VLSFO and down from last week’s 9-10 days for HSFO and LSMGO.

The region has imported 184,000 b/d of fuel oil in July so far, an increase from 133,000 b/d in June, cargo tracker Vortexa’s data said. 

United Kingdom was the top import source, accounting for 17% of the region's total fuel oil imports. Other key sources include France (15%) as well as Portugal, Denmark and Poland (10% each).

The region has exported 138,000 b/d of fuel oil in July thus far, a dip from 174,000 b/d in June, according to Vortexa data. 

Shipments mostly departed for Brazil (15%), Sweden (14%) and Malaysia (12%).

The region’s independent gasoil inventories - which include diesel and heating oil – have dropped 8% in July so far, compared to June. The ARA hub has imported a total of 152,000 b/d to date this month, slipping down from June’s 164,000 b/d, Vortexa data noted.

Saudi Arabia accounted for 21% of the total imports, followed by Qatar (19%) and the US (11%).

By Nachiket Tekawade

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