US fuel supply declines in July

Fujairah's residual fuel oil inventories surged by 61% in July compared to the previous month, according to recent data from the Fujairah Oil Industry Zone and S&P Global. The increase in monthly average stocks was driven by a sharp rise in fuel oil imports, which surged to approximately 51,000 barrels per day in July from just 3,000 barrels per day in June. Meanwhile, fuel oil exports dropped by 18,000 barrels per day to 168,000 barrels per day over the same period.

Saudi Arabia was the primary supplier of fuel oil to Fujairah, accounting for 56% of the supply in July. Iraq contributed 31%, Iran provided 11%, and Oman supplied 3%. On the export side, Singapore received the majority of the volumes, with 58%, followed by Gabon at 19% and Australia at 7%.

The middle distillate inventories remained largely unchanged from June. However, the uncertainty surrounding the fragile US-Iran ceasefire around the Strait of Hormuz continues to impact bunker fuel supply in Fujairah. The availability of heavy and light sweet fuel oil (VLSFO and LSMGO) remains tight, with only a limited number of suppliers able to offer LSMGO. However, high sulfur fuel oil (HSFO) supply has seen an improvement.