- LSFO Demand Slumps to Record Low Amid Ample Supply.
- First-Half 2025 Sees 5.3% Drop in Fujairah Bunker Volumes.
- HSFO Sales Rise Year-on-Year Despite Price Weakness.
Ship fuel sales at the Port of Fujairah took a hit in June, dropping by 8.4% from the previous month to reach 567,061 cubic meters. This marks the lowest monthly total since a record low of 558,300 cubic meters was recorded in February, according to data released by the Fujairah Oil Industry Zone (FOIZ) on July 15. Additionally, this figure reflects a 7.9% decrease compared to June 2024, reports S&P Global.
First Half 2025 Sales Decline Across All Grades
In the first half of 2025, total bunker fuel sales across all grades at Fujairah fell by 5.3% year-over-year, totalling around 3.70 million cubic meters. The steepest decline was in high-sulfur fuel oil (HSFO), which saw a 6.8% drop, followed closely by low-sulfur fuel oil (LSFO) with a 5.6% decrease.
Low-Sulfur Segment Sees Sharp Contraction
Sales of LSFO, which includes both 180 CST and 380 CST grades, plummeted by 14.1% year-over-year and 11.6% month-over-month in June, landing at 368,688 cubic meters. This is the lowest level recorded since FOIZ started publishing bunker data in January 2021.
Weak Demand and Ample Supply Pressures LSFO Prices
Industry insiders have noted that LSFO demand has been quite uneven as we move into July, which has put a damper on overall sentiment. With steady cargo valuations at the wharf and weak downstream premiums, suppliers are feeling the pinch on their margins. On top of that, a significant influx of upstream cargoes—like the Suezmax volumes coming from Kuwait’s Al Zour refinery—has led to lower overall valuations.
According to Platts, the average premium for Fujairah-delivered marine fuel 0.5% sulfur bunker over FOB Singapore marine fuel 0.5%S sulfur was:
- $4.59/mt in June (a drop from $6.42/mt in May)
- $4.03/mt for the first half of July
HSFO Sales Mixed Despite Low Valuations
In June, high-sulfur fuel oil bunker sales hit 160,106 cu m, marking a four-month low. However, this figure still represents a 6.8% increase compared to the same time last year. Valuations took a significant hit in June due to an oversupply, pushing prices into deeper discounts. Yet, they saw a recovery in early July, thanks to:
- Increased imports from Egypt for power generation
- Exports of Middle Eastern and Russian barrels to China for refinery use
Despite this, the high levels of HSFO stock and fierce competition among downstream suppliers continue to keep any major price increases at bay.
Bunker Premiums Show Volatility Across Segments
For HSFO, the Platts-assessed Fujairah-delivered 380 CST premium over FO 380 CST 3.5% FOB Arab Gulf averaged:
- $3.72/mt in June (a sharp decline from $14.35/mt in May)
- Bounced back to $14.06/mt during the period from July 1 to 15
In both the LSFO and HSFO markets, suppliers were eager to seize available demand in June and early July, trying to fill prompt barge slots while navigating competitive pricing strategies.
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Source: S&P Global
