Recently, marine fuel sales at the Fujairah bunker hub in the UAE saw a monthly increase but posted a year-over-year decline for the fourth consecutive month, according to data from Fujairah Oil Industry Zone (FOIZ) published by S&P Global Commodity Insights.
Key Highlights of Fujairah Bunker Sales (October 2024)
- Total Sales
- Monthly Increase: Fujairah’s total bunker fuel sales, excluding lubricants, rose to 635,471 cubic metres in October, marking a 3.3% increase from September.
- Yearly Decline: Compared to October 2023, total sales were down by 2.9%.
- Geopolitical Impact
- Persistent geopolitical tensions in the Middle East have influenced the demand for marine fuel in the region, according to trade sources.
- Bunker Grade Breakdown
- Low-Sulphur Bunker Sales: Total low-sulphur fuel oil (LSFO) sales, including residual fuels and marine gas oils, declined 7.3% month-on-month to 435,000 cubic metres in October.
- High-Sulphur Bunker Sales: In contrast, high-sulphur fuel oil (HSFO) sales surged 37.5% to 201,000 cubic metres, aligning with trends observed in other global hubs like Singapore, where some buyers favoured HSFO for its lower price compared to LSFO.
- Market Share
- High-Sulphur Fuels: HSFO’s market share rose to 32% in October, up from 24% in September.
- Low-Sulphur Fuels: LSFO’s share dropped to 68% from 76% in September, as a result of the increased preference for HSFO amid a wider price gap between the two.
- Comparison of Monthly Sales
- A summary of monthly bunker sales in cubic metres shows varying trends over 2024, with fluctuations affected by both market conditions and regional dynamics.
This rebound in monthly sales at Fujairah indicates a modest recovery, while the shift towards high-sulphur fuels highlights pricing as a significant factor in buyer preferences, amid ongoing regional uncertainties.
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Source: ZAWYA
