Fuel oil stocks in the Fujairah industrial area (Fujairah industrial area) increased by 14% in September 2023 compared to August, reaching 5.54 million barrels. This increase comes after fuel oil stocks had decreased to 3.93 million barrels in August. According to published data, fuel oil stocks at Fujairah port have recorded their highest level since July.
Changes in Stocks and Fuel Oil Imports
According to obtained information, fuel oil stocks consist of two main categories: heavy and residual stocks, which increased by 565,000 barrels to reach 4.50 million barrels, and medium stocks, which rose by 879,000 barrels to 2.42 million barrels. These changes indicate an increase in demand and business activities at Fujairah port.
Read more: 20% Decrease in Oil Product Reserves in Fujairah to 8.216 Million Barrels
Fuel oil imports to Fujairah port increased to 133,000 barrels per day in September, showing significant growth compared to 30,000 barrels per day in August. This increase is particularly influenced by the shares of Russia, Nigeria, Bahrain, and Saudi Arabia in imports, with Russia leading at 34%, Nigeria at 21%, Bahrain at 15%, and Saudi Arabia at 12%.
Export Status and Supply Challenges
On the other hand, fuel oil exports also increased by 51,000 barrels per day to reach 357,000 barrels per day. Singapore, Pakistan, and Malaysia are the main destinations for fuel oil exports from Fujairah port, accounting for 34%, 16%, and 11% respectively. This increase in exports indicates the strong position of this port as a net exporter of fuel oil, remaining above the level of imports.
However, bunker supply in Fujairah has become severely limited. Existing tensions between the United States and Iran have negatively impacted maritime traffic through the Strait of Hormuz, creating uncertainty in the arrival of fuel oil to the region. As a result, stocks of all main grades of fuel oil are severely constrained. These challenges could affect the oil market conditions in the future and highlight the need for closer monitoring of regional developments.
Read more: Russian Diesel and Gasoline Exports from the Black Sea Reached Zero · Decrease in Crude Oil Prices Due to Increased Supply from Saudi Arabia
