ARA fuel oil stocks climb 6% as October kicks off

ARA fuel oil stocks have risen by 6% during October, according to Insights Global data. The monthly average ARA stocks showed an increase from September, with fuel oil stocks up by 310,000 bbls to 5.78 million bbls and gasoil stocks up by 734,000 bbls to 13.32 million bbls. Fuel oil stocks have climbed by 60% since May, when they reached their lowest level in over a decade.

Inventories are currently 11% below February levels, prior to conflict in the Middle East disrupting oil and gas flows through the Strait of Hormuz. October imports of fuel oil stood at 250,000 b/d, a decrease from September's 266,000 b/d, with major shipments coming from Lithuania (25%), Mexico (18%) and France (16%). On the export front, the region shipped 111,000 b/d of fuel oil so far in October, down from 177,000 b/d in September, primarily for unloading in Spain (32%), Guinea (11%) and Sweden (9%).

Similarly, independent gasoil inventories, which include diesel and heating oil, have grown by 6% in October compared to September. The region's gasoil imports have risen to 233,000 b/d in October, up from 197,000 b/d in September, with the bulk arriving from Germany (41%), India (27%) and the UK (21%). Bunker availability in the ARA hub is tight, with buyers reporting lead times of 5-7 days to receive sufficient supplies from suppliers, according to a trader.