ARA Fuel Oil Stocks Rise 15% in Early September

Independently held fuel oil stocks within the Amsterdam-Rotterdam-Antwerp (ARA) trading hub have shown a significant increase in the initial period of September. Data from Insights Global indicates that these stocks averaged 15% higher compared to the monthly average recorded in August. This translates to an increase of approximately 680,000 barrels, bringing total fuel oil stocks to 5.30 million barrels.

This rise follows a period of lower inventories, with fuel oil stocks having increased by approximately 46% since May, when they reached their lowest level in over a decade. However, current inventory levels remain 18% below those recorded in February, prior to the outbreak of conflict in the Middle East.

Import and Export Dynamics

Fuel oil import volumes into the ARA region have seen a reduction in September so far. Vortexa cargo flow data indicates that around 276,000 barrels per day (b/d) of fuel oil have been imported in September, a decrease from August's monthly average of approximately 342,000 b/d. The primary sources for these shipments included Mexico (51%), Poland (23%), and Finland (13%).

Conversely, fuel oil export activity from the region has increased. Exports averaged around 184,000 b/d in September to date, up from approximately 144,000 b/d in August. The main destinations for these exports were Canada (84%) and the UK (13%).

Gasoil Inventories and Market Conditions

Independent gasoil inventories in the ARA hub, which encompass diesel and heating oil, have remained largely stable in September, showing little change from August levels, according to Insights Global. Despite this recent stability, gasoil inventories are reported to be near their lowest level in four years.

Imports of gasoil into the region have seen an increase in September, with Vortexa data showing around 271,000 b/d imported so far, up from an average of approximately 155,000 b/d in August. The Netherlands supplied 74% of these cargoes, with Belgium contributing the remaining 26%.

Regarding market conditions for fuel oil, a trader indicated that fuel availability for prompt deliveries in the ARA region is currently tight. Buyers are advised to anticipate a lead time of around 5-7 days to secure competitive offers from a broad selection of suppliers.