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Kuwait fuel oil exports increase for 2nd month as Al Zour increases

Kuwait's fuel oil exports rose for a second month in February, according to shiptracking data from Kpler and LSEG, as the Al Zour refinery powered towards full capacity.

Since bringing Al Zour online in late 2022, Kuwait has become a significant exporter of fine-tuned products, especially extremely low sulphur fuel oil (VLSFO) used in shipping.

Consultancy FGE said Al Zour runs reached full capacity of 615,000 barrels per day for the very first time in February even more testing might see this ease once again.

We expect Al Zour's typical runs in 2024 will be around 415,000 bpd (67%), with a sweet spot ranging from 400,000 to 450,000 bpd, said Palash Jain, FGE's Middle East oil analyst.

Kuwait's oil exports hit a record high of about 720,000 metric tons (158,000 barrels per day) in February, data from analytics firm Kpler revealed.

Very low sulphur fuel oil (VLSFO) accounted for about 60% of the volume and high sulphur fuel oil (HSFO) for 40%, estimations based on Kpler's information revealed.

Roslan Khasawneh, senior oil analyst at Kpler, stated the OPEC producer's VLSFO exports are most likely to be constant to higher in March provided firm regional costs and spare refining capability.

Peak power demand in the summer could press VLSFO exports from present levels however not dramatically provided Al Zour's. ample production capacity, he included.

LSEG data put total February exports at about 516,000 heaps,. the highest because March 2016.

Kuwait Petroleum Corp did not respond to a request for. comment.

HSFO exports from Kuwait's Mina Al Ahmadi (MAA) refinery. Increased for a second month.

VLSFO exports are recovering from a slowdown in the 4th. When products were diverted for domestic power, quarter. generation.

KPC increased the variety of spot VLSFO tenders from Al Zour. to three in February, trade sources stated. A single tender in. January was the first after a gap of more than 3 months.

The rise has pressed money differentials for VLSFO in Asia. down nearly 8% considering that the start of February << MFO05-SIN-DIF >.

Given that Al-Zour began operations, more than 50% of Kuwait's. VLSFO exports have actually gone to Singapore, the world's leading bunkering. port, while more than 40% stayed in the Middle East, with. Fujairah in the United Arab Emirates a primary destination, based. on trade sources and Kpler.