ARA Fuel Oil Stocks Climb 10% in Early August
Key Takeaways
- •Fuel oil stocks at the ARA hub increased by 420,000 barrels to 4.45 million barrels in early August, averaging 10% above July levels despite remaining 31% below February figures.
- •Gasoil inventories dropped to 11.19 million barrels, their lowest level in over four years, heightening supply concerns ahead of peak winter heating demand.
- •ARA fuel oil imports jumped to 457,000 b/d in early August from July's average of 159,000 b/d, with Benin, Venezuela, and Colombia collectively supplying over 70% of arrivals.
- •Middle East conflict has disrupted traditional supply routes and elevated freight costs through the Red Sea corridor, contributing to a structural shift in sourcing patterns.
- •Rotterdam bunker prices have risen markedly over the past month, with HSFO up approximately 18%, VLSFO up 11%, and LSMGO surging roughly 24%.
Independently held fuel oil stocks at the ARA (Amsterdam-Rotterdam-Antwerp) hub — northwest Europe's primary oil products trading, storage, and bunkering center — have averaged 10% higher in early August compared to July's monthly average, according to Insights Global data.
Fuel oil stocks rose by 420,000 barrels to 4.45 million barrels, while gasoil stocks declined by 1.05 million barrels to 11.19 million barrels.
Fuel oil inventories have rebounded approximately 23% since May, when they fell to their lowest level in over a decade. However, stocks remain 31% below February levels, recorded prior to the outbreak of conflict in the Middle East, which has disrupted conventional supply routes and elevated freight costs through the Red Sea corridor.
The ARA hub imported 457,000 barrels per day (b/d) of fuel oil in the first week of August, a sharp increase from July's monthly average of 159,000 b/d, according to Vortexa cargo flows data. Benin supplied approximately 35% of early August arrivals, with notable volumes also coming from Venezuela (19%) and Colombia (17%), reflecting a continued shift toward African and Latin American blendstocks and residual fuel supplies.
On the export side, the region shipped out 96,000 b/d of fuel oil in August so far, down from 175,000 b/d in July. Primary destinations included Spain (42%) and Russia (16%).
Independent gasoil inventories — encompassing diesel and heating oil, the backbone of European road freight, industrial activity, and winter heating demand — fell by 9% in early August compared to July, according to Insights Global. Gasoil stocks have dropped to their lowest level in just over four years, tightening a market that Europe relies on heavily for both commercial transport and residential heating ahead of the coming winter season.
Gasoil imports reached 228,000 b/d at the start of August, up considerably from an average of 119,000 b/d in June, Vortexa data showed. The majority of shipments originated from the United States (23%), Sweden (21%), and France (10%).
Bunker availability across the ARA hub remains tight for prompt delivery dates, with buyers recommending lead times of approximately 5–7 days to secure supplies of any fuel grade, according to a trader.
In Rotterdam, VLSFO and HSFO bunker prices have risen by approximately 11% and 18%, respectively, over the past month, while LSMGO prices have surged by roughly 24% over the same period, according to ENGINE data.
Source: By Nachiket Tekawade, ENGINE,