ARA fuel oil stocks climb 15% in August

In August, the ARA's fuel oil stocks rose by 15% compared to July, according to Insights Global data. As of now, fuel oil stocks have reached 4.62 million barrels, while gasoil stocks have decreased to 12.07 million barrels. This increase marks a 28% rise from May, when stocks hit their lowest point in over a decade. However, these inventories are still 29% below February levels at the start of the Middle East conflict.

The ARA hub has imported about 344,000 barrels per day (b/d) of fuel oil so far in August, a significant increase from July's average of 159,000 b/d. The main import sources have been Benin (20%), Venezuela (15%), and Mexico (8%). Conversely, the region has exported around 141,000 b/d of fuel oil in August, down from July's average of 175,000 b/d. The primary destinations for these exports include Malaysia (26%), Singapore (25%), and Spain (18%).

Gasoil inventories have also declined by 1% in August compared to July, reaching their lowest levels in four years. Imports of gasoil in August have increased to 156,000 b/d, up from an average of 119,000 b/d in July. Major sources of these imports include the US (36%), Sweden (12%), and the UK (10%).

Despite the increased availability of fuel oil, the ARA bunkering hub continues to experience tight fuel availability. Buyers are advised to expect lead times of 5-7 days to secure supplies from suppliers. Traders have noted a slowdown in bunker demand in the area.