- The pandemic’s impact on oil demand took a chunk out of Fujairah’s bunker demand last year.
- Cockett Marine Oil chief executive Cem Saral said that with fewer box ships and bulkers calling at the port, Fujairah was exposed to the vagaries of the oil market.
- Bunker demand in the regional oil products’ hub fell by nearly a fifth in 2020 compared to volumes sold in the previous year.
A recent news article published in the Ship and Bunker as well as Platts reveals that Fujairah’s bunker stocks climb up for the first time in 8 weeks.
Fujairah Oil Industry Zone data
Total inventory stood at 23.282 million barrels as of Feb. 1, up 7% from a week earlier and the highest since Jan. 4.
According to Fujairah Oil Industry Zone data provided exclusively to S&P Global Platts on Feb. 3. Middle distillates led the way, showing a 15% gain to 5.171 million barrels after rising 16% a week earlier.
The 33% increase over two weeks puts middle distillates at a six-week high.
Oil products stockpiles at the UAE
Oil products stockpiles at the UAE’s east coast Fujairah port climbed to a four-week high, with all categories showing gains for the first time in eight weeks and demand for bunker fuel slowing.
Marine bunkers and fuel
Heavy distillates inventories, including marine bunkers and fuel used in power generation, stood at 10.78 million barrels on Feb. 1, up 8% from a week earlier and the highest in two weeks.
World’s largest bunkering hub
Fujairah-delivered marine fuel with 0.5% sulfur bunker was $461/mt on Feb. 2, $6/mt lower than in Singapore, the world’s largest bunkering hub, according to Platts assessments.
Fujairah demand has “dialed down a fair measure from Feb. 1,” Platts reported in its daily Bunkerwire for Feb. 2.
Fujairah marine fuel sales hit
Fujairah marine fuel sales have been hurt due to mainly oil tankers, instead of container ships or cruise lines, calling at Fujairah as well as OPEC+ production cuts, according to Cem Saral, CEO of bunker reseller Cockett Marine Oil.
“Given the impact of COVID on oil products demand along with the impact of OPEC and crude oil export cuts, the region experienced significant headwinds on underlying tanker activity, hence explaining the bunker demand decline observed year on year,” Saral was quoted as saying by commodity price-reporting agency SP Global Platts.
Bunker demand in the regional oil products’ hub fell by nearly a fifth in 2020 compared to volumes sold in the previous year.
Fujairah, along with Singapore and Rotterdam, is a top three global shipping and bunkering hub.
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Source: Ship and Bunker & Platts
