- Bunkering demand at the port of Fujairah has dropped following a recent attack on tankers in the Middle Eastern region.
- Attacks on two oil tankers in the Gulf of Oman have raised overall energy and shipping security concerns in the area.
- The recent attacks have no direct price impact on the bunkering front, war risk insurance premiums for vessels have increased.
- The bunker demand has been temporarily diverted away from Fujairah to other key ports such as Singapore.
According to an article published in Platts, bunkering demand at the port of Fujairah in the UAE has dipped a bit following recent tanker attacks in the Middle Eastern region, though it’s not clear if the trend is just temporary.
Vessels canceled
Based on bunker market sources said this week, a Fujairah bunker trader said, “We have had some vessel cancellations from shipowners that don’t feel comfortable lifting here at the moment,”.
“Some vessels are likely to lift more quantities in Asian ports to get to their destinations, it’s a very fragile situation over here right now,” the trader added.
Shippers on alert
Attacks on two oil tankers in the Gulf of Oman last Thursday had raised overall energy and shipping security concerns in the area.
It is not immediately clear as to how much more demand might slow, and market participants are keeping a close watch for further developments.
“Maybe a few owners will try to avoid Fujairah for the time being, but we don’t think there will be any longer-term impact unless new problems come up,” a Fujairah bunker supplier said.
Attack on tankers
The most recent incident follows last month’s attack on four tankers, which also took place in the Gulf of Oman.
Four tankers — two of them Saudi owned, one UAE flagged and the other Norwegian flagged — were attacked in waters near Fujairah on May 12.
While the recent tensions posed no direct price impact on the bunkering front, war risk insurance premiums for vessels have increased, sources said.
Tankers diverted to key ports
Some bunker demand could be temporarily diverted away from Fujairah to other key ports such as Singapore, sources added.
“Demand for bunkers [at Fujairah] has fallen quite a bit, we have already seen some Japanese and Korean shipowners preferring to go to other ports,” another Fujairah bunker supplier said.
Demand for bunker premiums
Bunker premiums in Fujairah have been rangebound in recent weeks. The delivered 380 CST bunker fuel premium over the Mean of Platts Arab Gulf 180 CST high sulfur fuel oil assessments had averaged $10/mt in H1 June, stable compared with H2 May, Platts data showed.
Typical monthly bunker demand in Fujairah ranges between 700,000 mt to 800,000 mt, according to market source estimates.
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Source: Platts
