European Residual Fuel Oil Stocks Down on Demand in Major Bunkering Markets

by Ship & Bunker News Team
Friday August 19, 2016

European residual fuel oil stocks in June were down by 1.8 mb month-on-month to 80.7 mb, according to the latest data from the Organization of the Petroleum Exporting Countries (OPEC).

The organisation noted that while this was 6.1 mb, or 8.2 percent, higher than June 2015 levels, it is 2.7 mb, or 3.3 percent, lower than the latest five-year average.

"The fall in residual fuel oil stocks was a result of higher fuel oil demand, especially in major EU bunkering markets," OPEC wrote in its latest monthly oil market report (MOMR).

Fuel oil inventories for July in the U.S. were also down, falling by 1.8 mb to 38.3 mb.

OPEC noted this was "slightly lower than the same period a year ago, but remained at 0.9 mb, or 2.5%, above the seasonal norm."

Looking at specific markets, OPEC data indicated that as at the end of June, fuel oil stocks in Singapore fell to 25.6 mb, a decline of 5.5 mb, following gains over the last two months.

The figure was 0.3 mb, or 1.0 percent, lower than at the same point in 2015.

However, this drop did not lead to any supply constraints; "there is plenty of shipping and industrial fuel stored offshore in tankers," OPEC observed.

In the Amsterdam-Rotterdam-Antwerp (ARA) market, higher exports, mainly to Asia, resulted in fuel oil stocks falling by 0.5 mb in June to 7.1 mb, but this was still 0.8 mb, or 11.7 percent, higher than a year ago.

Ship & Bunker News Team
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