- June Bunker Volumes at Fujairah Hit Four-Month Low.
- Geopolitical Tensions Weigh on Gulf Bunker Demand.
- Fujairah Refuelling Activity Slows Amid Regional Uncertainty.
Bunker fuel sales at the Fujairah port in the United Arab Emirates saw a 5% drop in the first half of 2025 compared to the same timeframe last year, according to data from the Fujairah Oil Industry Zone (FOIZ). From January to June, total bunker volumes reached 3.7 million cubic meters (around 3.6 million metric tons), down from 3.9 million cubic meters during the first half of 2024, based on FOIZ data shared by S&P Global Commodity Insights, reports Reuters.
Strategic Importance of Fujairah Port
Nestled on the UAE’s east coast near the entrance to the Strait of Hormuz, Fujairah serves as a crucial regional bunkering hub. The port is essential as a refuelling station for tankers that transport crude oil on long-haul routes out of the Gulf.
June Sales Hit Four-Month Low
In June, bunker fuel sales fell to 563,000 cubic meters, marking the lowest level in four months and reflecting an 8% decline from May. This slowdown came amid rising regional tensions between Iran and Israel, which led shipping companies in the Gulf to adopt a more cautious approach. Although a ceasefire was eventually established, vessels aimed to minimise their time in the area due to ongoing security concerns.
Tepid Demand Predates Geopolitical Tensions
While some traders had expected a slight decrease in bunker volumes, they also pointed out that demand had been generally weak throughout the year, even before the recent geopolitical tensions. Sources in Dubai noted that refuelling activity had been lacklustre for much of 2025.
Weak Price Differentials and Lower Sales Across Grades
Price differentials compared to benchmark quotes remained weak for both low-sulphur and high-sulphur bunker fuel grades. This trend contributed to lower volumes for both categories on a year-over-year basis during the first half of 2025.
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Source: Reuters
