ARA fuel oil stocks climb 5% so far this month

Fuel oil stocks in the ARA region have risen by 5% this month, according to the latest figures from Vortexa cargo flows data. This increase comes after the stocks hit their lowest level in over a decade in May, when they fell by 17% from that point. However, the current inventory levels remain 34% lower than they were in February, prior to the conflict in the Middle East.

As of mid-August, the ARA hub had imported 381,000 barrels per day (b/d) of fuel oil, a significant jump from July's average of 159,000 b/d. The majority of these shipments originated from Venezuela (21%), Benin (20%) and Lithuania (10%). On the export side, the region has shipped 87,000 b/d of fuel oil so far in August, down from July's 175,000 b/d. Major destinations for these exports include Mauritania (21%), Norway (18%) and Spain (12%).

Independent gasoil inventories, which encompass diesel and heating oil, have also declined by 5% in August compared to July, according to Insights Global data. These inventories have fallen to their lowest level in nearly four years. Gasoil imports have risen to 129,000 b/d by mid-August, up from an average of 119,000 b/d in June, with the United States (26%), UK (11%) and France (8%) being the primary sources.

The tight availability of bulk carriers in the ARA region means that buyers are advised to expect lead times of around 5-7 days to secure competitive offers from a variety of suppliers.