- Total sales at 696,610 cu m in March
- Record high was 782,060 cu m in Oct 2021
- HSFO sales rise 3.11% on month
Fujairah’s bunker sales in March rebounded 12.79% on the month from a record low in February, led by gains in low sulfur fuel oil and low sulfur marine gasoil, reports Platts.
Volatile demand
The total was 696,610 cu m, up 12.79% from 617,622 cu m in February, the lowest for the Fujairah Oil Industry Zone data since January 2021. Although at a three-month high, the total volume was still well below the record high of 782,060 cu m in October 2021.
Low sulfur fuel oil 180 CST sales in March more than doubled on the month to 369 cu m, while LSFO 380 CST jumped 14.21% on the month to 527,677 cu m. Marine gasoil was the only category, which fell 21.43% on the month to 1,096 cu m. High sulfur fuel oil 380 CST sales rose 3.11% to 129,293 cu m.
“Demand was volatile in March,” a Fujairah-based bunker supplier said, with activity improved from February because of better weather but quiet on some days because of surging crude oil prices. There are signs of even higher sales for April as traders said their HSFO volumes for the first half of April are about 10% higher than the same period in March.
Premiums of Fujairah-delivered marine fuel 0.5%S over the benchmark FOB Singapore marine fuel 0.5%S cargo assessments gained $17.88/mt on the month to average $43.85/mt in March, according to S&P Global Commodity Insights data. The premium averaged $45.24/mt April 1-18, the data showed.
“Delivered LSFO premiums may have strengthened [since February] and bunker prices at Fujairah could be more expensive than in Singapore. But no diversion of demand to other ports was seen, though buyers are more likely to minimize or defer requirements,” another bunker supplier said.
LSFO bunker demand strengthen
Traders said LSFO bunker demand is strengthening even as inventories have grown in April while rising HSFO stockpiles have led suppliers to be more competitive and offer more of the delivered grade for prompt delivery in April.
Nearing the end of March, HSFO suppliers faced congested barge schedules due to a pickup in downstream HSFO demand, bunker suppliers said. Tightened barge availabilities also further limited slots for prompt delivery and extended lead times to around nine to 10 days, beyond the typical two to three days.
Moreover, tightened barge availability had capped HSFO bunker sales as suppliers were forced to decline inquiries, despite above-average volumes of inquiries during the last two weeks in March, Fujairah-based bunker suppliers said.
HSFO delivery capacity decline
Fujairah’s HSFO delivery capacity declined slightly during the second half of March when at least one HSFO barge was taken offline for technical issues, traders said.
Premiums of Fujairah-delivered 380 CST HSFO against the FOB Arab Gulf 180 CST HSFO cargo assessments averaged $20.42/mt in March, above the $19.31/mt in February, S&P Global data showed. The premium averaged $26.56/mt April 1-18.
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Source: Platts
