According to the latest data from the Fujairah Oil Industry Zone, sales of marine fuel, commonly referred to as bunker fuel, reached their highest levels in four months in May at Fujairah in the UAE. This marked the third consecutive month of recovery in bunker fuel sales at the port, as published on Nasdaq.
Signs of recovery
In May, bunker sales at Fujairah, the world’s third-largest bunkering port in the Middle East, showed signs of recovery following trends seen at Singapore, the largest bunker hub. Total bunker volumes, excluding lubricants, reached 620,388 cubic meters (about 615,000 tonnes), representing a 4.0% increase compared to the previous month but a 16.7% decrease from the same period last year. The rise was driven by a surge in low-sulfur bunker sales, which accounted for 80% of the market share, while high-sulfur bunker sales slightly declined. Despite this, overall bunker demand at Fujairah has weakened throughout the year, according to trade sources in Dubai.
Bunker volumes at Fujairah have been averaging below 600,000 metric tons per month in 2023, compared to an average of about 664,000 metric tons per month in 2022. This decline in monthly volumes could potentially be the “new normal” going forward, according to a bunker trader at Fujairah. In May and June, prices for delivered 0.5% marine fuel in Fujairah have dropped to single-digit premiums compared to benchmark Singapore cargo quotes. This is in contrast to Singapore, where the same product had double-digit bunker premiums.
Fujairah bunker sales by month in cubic metres, excluding lubricants:
Monthly bunker sales by grade in cubic metres:
|Month||180cst LSFO||380cst LSFO||380cst HSFO||MGO||LSMGO||Lubricants|
(Data from the Fujairah Oil Industry Zone published by S&P Global Commodity Insights)
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