Independently held fuel oil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) storage hub — one of Europe's most critical petroleum trading and bunkering centers — averaged 1% lower in July compared with June's monthly average, according to data from Insights Global.

Fuel oil stocks fell by 50,000 barrels to 4.03 million barrels, while gasoil stocks declined by 1.3 million barrels to 12.24 million barrels.

Despite the month-over-month decrease, fuel oil inventories have risen approximately 11% since May, when they touched their lowest level in more than a decade. However, stockpiles remain 38% below February levels, prior to the outbreak of conflict in the Middle East.

According to Vortexa cargo data, the ARA hub imported only 161,000 barrels per day (b/d) of fuel oil in July, a sharp decline from June's monthly average of 215,000 b/d. With exports exceeding imports, the region operated as a net fuel oil exporter during the month. Incoming shipments originated primarily from Syria (28%), France (17%), and Sweden (13%), among other countries.

On the export side, the region shipped out 170,000 b/d of fuel oil in July, nearly unchanged from June's 172,000 b/d. Cargoes were discharged in Singapore (21%), Spain (16%), and Egypt (13%), among other destinations. Singapore is the world's largest bunkering market by volume, making it a key outlet for ARA-origin fuel oil.

Independent gasoil inventories — which include diesel and heating oil, critical fuels for European road freight, industry, and winter heating demand — dropped by 10% in July compared with June, Insights Global data showed, falling to their lowest level in nearly four years.

Gasoil imports also declined significantly, falling to 129,000 b/d in July from 188,000 b/d in June, according to Vortexa data. The majority of these shipments came from Sweden (24%), the UK (16%), and the US (13%).

Meanwhile, bunker fuel availability in Rotterdam has tightened for prompt delivery dates. A trader reported that buyers are being advised to allow lead times of approximately 5–7 days to secure supplies across all fuel grades.

Pricing has also shifted notably over the past month. High sulfur fuel oil (HSFO) bunker prices have fallen around 12%, while very low sulfur fuel oil (VLSFO) prices have dropped approximately 16%. Low sulfur marine gasoil (LSMGO) has seen the steepest decline, slumping roughly 39% over the same period. The separate pricing dynamics between HSFO — used primarily by vessels equipped with exhaust gas cleaning systems, or scrubbers — and the lower-sulfur alternatives reflect the ongoing market segmentation created by the International Maritime Organization's 2020 global sulfur cap, which limited marine fuel sulfur content to 0.5%.

Source: By Nachiket Tekawade, ENGINE,