Recently, marine bunker fuel sales at Fujairah port in the United Arab Emirates experienced a notable increase of 10.7% compared to the previous year, marking the second consecutive month of yearly growth. This surge in sales was attributed to heightened global demand for refuelling following tensions in the Red Sea region.
Factors Driving Sales
- Global Refuelling Demand: Tensions in the Red Sea prompted several ships to divert routes, increasing demand for fuel at key bunker hubs like Fujairah and Singapore.
- Market Dynamics: Although sales dipped by 6.1% from January, in line with slower demand observed elsewhere, the overall uptake was affected by longer voyages and delayed returns of ships to refuel.
- Fuel Grade Preferences: Low-sulphur bunker sales dominated the market, comprising 70% of total sales, while high-sulphur bunkers accounted for the remaining 30%.
Sales Trends and Future Outlook
- Fujairah maintained its position as the world’s third-largest bunker hub in 2023, despite a trend of lower sales in recent years.
- While geopolitical risks in the Middle East have impacted demand in the past year, ongoing tensions and global dynamics are expected to continue influencing bunker fuel sales in the region.
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Source: XM
