Ship fuel sales at the Port of Fujairah on the eastern coast of the UAE in August fell 2.7% from July, when sales had their first increase since the US/Israel war with Iran began in February, according to port data published Sept. 15.
The August total dropped 65% year over year to 227,950 cubic meters, the data showed. In July, sales more than doubled month over month.
Suppliers are running low on ship fuel, leading to higher premiums, with limited availability of both high sulfur fuel oil and low sulfur fuel oil, according to four traders who spoke with Platts, part of S&P Global Energy.
A cargo supplier has been unable to get a blending component, limiting supplies, one of them said, asking not to be identified because they don’t have the authority to speak to the media.
Demand in Fujairah has improved for two consecutive months but remains below prewar levels, the traders said. “Very aggressive” pricing by some suppliers has boosted demand, a trader said.
Platts, part of S&P Global Energy, assessed the Fujairah-delivered marine fuel 0.5%S bunker premium over FOB Singapore Marine Fuel 0.5%S cargo values at an average of $65.70/metric ton in August, down from the July average of $88/mt. Fujairah’s LSFO delivered bunker premium has risen to an average of $99.86/mt so far this month through Sept. 14, Platts data showed.
Platts assessed the Fujairah-delivered 380 CST HSFO bunker premium over fuel oil 380 CST FOB Arab Gulf cargoes at an average of $114.72/mt in August, up from $113.77/mt in July. With oil product outflows from the Gulf still largely blocked amid the conflict, depleting inventories have bolstered the Fujairah-delivered HSFO premium, which has averaged $135.95/mt through Sept. 14, Platts data showed.
Source: Platts
