The supply of fuel oil is under control despite refiners switching more production to higher-margin middle distillates, a senior executive from Saudi Arabia's Yasref Company said on Wednesday.
"We believe the balance is there in the (Middle East) region," Nayef Alharbi, corporate planning general manager at the Yanbu Aramco Sinopec Refining Company, told the APPEC conference.
The impact on the vessel bunkering market is obvious as it is a key demand outlet for fuel oil, but the overall balance is still under control, said Alharbi.
Refiners have shifted to produce more transportation fuels including diesel, jet fuel and gasoline since the Iran war started at the end of February.
The shift has spurred concerns about limited availability of global fuel oil supply as refiners prioritise the production of other higher-margin distillates.
(Reporting by Jeslyn Lerh; Editing by Thomas Derpinghaus and Kate Mayberry)
