Furnace oil turned black gold for refineries

Aftab Ahmed

Islamabad: Furnace oil sales jumped by 85 percent in June 2021 from May 2021 levels. The demand for black oil has significantly increased as the majority of gas fields are on maintenance and imported LNG is also in short supply due to Engro LNG dry docking and increased load shedding for industries due to peak summer season demand from consumers.

It is worth mentioning to note that refineries furnace oil inventory in Pakistan has declined to 21,000 tons which were at 55,000 tons at the start of the month. Total Parco was carrying 17,950 tons at the start is now only holding an inventory of 5,010 tons. Attock refinery was holding the largest furnace oil 27,104 tons of inventory at the start of June is now holding 9,739 tons and has sold 46,599 tons of furnace oil during June 2021.

Total Furance Oil Sale

Pakistan’s total furnace oil sales were 310,000 tons in June 2021. Local refineries sold 260,000 tons to oil marketing companies and the remaining demand is met through opening inventory carried by Pakistan state oil and Attock Petroleum Limited. PSO has sold 176,000 tons of furnace oil in June 2021 and APL has sold only 42,000 tons in June 2021.

Pakistan local refineries produced 225,633 tons in June 2021 and sold 252,527 tons in June 2021. Refineries production of MS and HSD remained at 221,962 and 439,977 tons in June 2021.

Total Parco has produced 76,765 tons of furnace in June and has sold 79,881 tons during June 2021. Total Parco furnace oil inventory has declined to 5,010 tons in June 2021.

In June 2021 National refinery sales increased by 132 percent from May 2021. NRL has sold 37,947 tons of furnace oil in June 2021 and has produced 39,200 tons. NRL has also produced 12,900 tons of MS and 68,400 tons of HSD and has sold 12,192 tons of MS and 73,960 tons of HSD. NRL’s current furnace oil inventory is at 2,683 tons.

PRL

Pakistan refinery sales increased by 101 percent from May 2021. PRL has sold 28,589 tons of furnace oil in June 2021 and has produced 28,738 tons. PRL has also produced 20,962 tons of MS and 54,165 tons of HSD and has sold 22,997 tons of MS and 46,8169 tons of HSD. PRL’s current furnace oil inventory is at 2,408 tons.

ARL

It is worth mentioning to Attock refinery has sold 46,599 tons in June 2021. ARL production was only 29,234 tons in June 2021, its sales or higher due to 27,104 tons of opening inventory in June month. ARL has also produced 43,756 tons of MS and 47,979 tons of HSD and has sold 44,849 tons of MS and 45,964 tons of HSD. ARL’s current furnace oil inventory is at 9,739 tons.

BYCO refinery oil sales increased by 58 percent in June 2021 from May 2021. BYCO has sold 59,511 tons in June 2021 and has produced 54,696 tons of furnace oil. The refinery has also produced 33,706 tons of MS and 62,263 tons of HSD and has sold 30,797 tons of MS and 58,937 tons of HSD. BYCO’s current furnace oil inventory is at 1,293 tons.