Fujairah's heavy oil reserves (Fujairah Oil Industrial Area) increased by an average of 19% in September 2023 compared to the previous month, reaching 4.69 million barrels. This increase is primarily due to a significant rise in heavy oil imports from various countries.
Increase in Heavy Oil Reserves and Imports
According to data, heavy and residual oil reserves increased by 760,000 barrels. Additionally, intermediate oil reserves reached 2.33 million barrels, marking an increase of 790,000 barrels. However, the average heavy oil reserves this month remain below the average of 5.54 million barrels in July.
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Heavy oil imports in Fujairah have surged from 30,000 barrels per day in August to 126,000 barrels per day this month. Russia, supplying 48% of these imports, has become the largest source of heavy oil in Fujairah. Other supplying countries include Georgia, Bahrain (20%), and Iran (12%). This shift in sourcing away from Saudi Arabia, which was the largest supplier in August, reflects changes in the global oil market.
Decline in Exports and Regional Crises
Despite the increase in imports, heavy oil exports from Fujairah have decreased this month to 262,000 barrels per day, indicating a drop of 44,000 barrels. The largest destinations for heavy oil exports from this region include Malaysia and Singapore at 22%, the United States at 15%, and India at 12%. Given that exports significantly exceed imports, Fujairah remains a net exporter of heavy oil.
Intermediate oil reserves in Fujairah have also increased by an average of 51% compared to August, reaching their highest level since February 2023. However, the availability of Bunker fuel in Fujairah is heavily impacted by ongoing tensions between the United States and Iran, which have disrupted transportation through the Strait of Hormuz. Local sources report a severe shortage of supply for all major fuel grades, and heavy oil imports have also declined due to regional uncertainties.
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