ARA gasoil stocks grow amid higher imports from India and Saudi Arabia
The ARA’s independent gasoil inventories – which include diesel and heating oil – have averaged 3.5% higher so far this month than in April, according to Insights Global data.
Changes in monthly average ARA stocks from April to May (so far):
Fuel oil stocks up 1.10 million bbls to 8.89 million bbls
Gasoil stocks up 610,000 bbls to 18.13 million bbls
Since the EU ban on refined Russian oil products came in to force on 5 February, buyers in the ARA have stepped up gasoil imports from countries such as India and Saudi Arabia. This has supported stockpiles.
Russia used to be the ARA’s biggest gasoil and diesel import source prior to the EU sanctions. However, ARA buyers have consistently increased imports from Middle Eastern and Asian countries since February.
According to cargo tracker Vortexa, the region has imported 711,000 b/d of gasoil so far this month, up by 217,000 b/d from April.
India has become the ARA’s top gasoil import source so far this month and accounted for 28% of its total, followed by Saudi Arabia’s 18%.
Other gasoil import sources have been the UAE (16%), the US (8%) and Italy (6%).
The ARA’s fuel oil stocks have also increased significantly so far this month, backed by higher net imports.
In the absence of Russian inflows, regional buyers have sourced their fuel oil imports from the Middle East and some European countries in recent weeks, going by Vortexa data.
The region’s fuel oil imports have primarily arrived from Germany and Saudi Arabia (18%), Sweden (16%), and Poland (11%).
Meanwhile, fuel oil cargoes have departed for Panama (52%), Germany (17%), the UK (12%) and France (9%).
Prompt supply of LSMGO is said to be normal in the ARA bunkering hub, with recommended lead times of 3-5 days. However, securing prompt deliveries of VLSFO and HSFO can be difficult in the region, requiring lead times of 6-7 days.
Source: By Shilpa Sharma, ENGINE, https://engine.online/news-single?postId=19044