Fujairah Bunker Fuel Sales Fall to Four-month Low
Marine fuel sales at the United Arab Emirates' Fujairah, third largest bunkering hub in the world, fell to a four-month low in June as high bunker premiums and tight supplies capped uptake.
Total bunker sales volumes were down 13% month-on-month at 647,184 cubic meters (about 619,602 tonnes) in June, based on latest data from the Fujairah Oil Industry Zone published by industry information service S&P Global Commodity Insights.
"Fujairah barges have been trading above Singapore since mid-June. Both bunkering hubs have been experiencing a shortage of low-sulfur blend components which is creating tightness in the physical market," said Timothy France, MENA senior oil analyst at Refinitiv Oil Research.
"Higher bunker premiums appear to be weighing on demand. Refinitiv ship tracking data indicates a slowdown in bunker sales through late June and July," he added.
Combined low-sulphur bunker sales in June sank 13% to 514,494 cubic meters from May, while its market share of overall bunker volumes was steady from May at 79%.
Meanwhile, sales of 380-cst high-sulphur fuel oil (HSFO) fell 14% from May to 132,690 cubic meters in June, making up 21% out of overall bunker volumes.
The trend was in line with lower monthly sales at top bunkering hub Singapore, when marine fuel sales for June fell to a two-month low as high premiums for low-sulphur bunker fuel diverted demand to other bunkering ports.
|Total volumes by month:|
|2022||Total bunker sales (in cu m)||m-o-m % change|
|Breakdown by grade for current month:|
|2022||Total low sulphur bunker sales||m-o-m % change||180cst LSFO||380cst LSFO||MGO||LSMGO||380cst HSFO||m-o-m % change||Lubricants||m-o-m % change|
(Reuters - Reporting by Jeslyn Lerh; Editing by Rashmi Aich)