ARA fuel oil stocks climb down 1% in July

According to Insights Global data, the ARA's fuel oil stocks experienced a 1% decline in July compared to the previous month's average. Fuel oil stocks decreased by 50,000 barrels to reach 4.03 million barrels, while gasoil stocks fell by 1.3 million barrels to 12.24 million barrels. However, fuel oil stocks have risen by around 11% since May, when they hit a decade-low.

The ARA hub imported only 161,000 barrels of fuel oil in July, a significant decrease from June's average of 215,000 barrels. These imports originated from Syria, France, and Sweden. Meanwhile, the region exported 170,000 barrels of fuel oil in July, nearly the same as June's exports. Gasoil inventories, including diesel and heating oil, dropped by 10% in July, reaching their lowest level in nearly four years.

Gasoil imports also decreased sharply to 129,000 barrels in July, mainly from Sweden, the UK, and the US. Bunker fuel availability in Rotterdam is tight, with deliveries taking around 5-7 days to secure. HSFO and VLSFO bunker prices dropped by around 12% and 16% in the last month, respectively, while LSMGO prices fell by approximately 39% during the same period.