Bunker fuel demand at Jebel Ali in Dubai has shown signs of recovery in August after a summer slowdown. Market sources indicate a steady increase in demand, with expectations for further rises after September 20, particularly from bulk carriers. A significant driver of demand has been a notable increase in high-sulfur fuel oil from vessels equipped with scrubbers. The price difference between low-sulfur and high-sulfur fuel oil is currently about $100.
Iraq Bunker Market
The bunker market in Iraq’s southern ports, including Umm Qasr, saw stable demand in August. This was supported by robust Basra crude oil exports and more container ships calling at the ports. Supply, however, has faced constraints from operational issues like extreme heat and sandstorms, as well as tighter port regulations. Many shipowners are reportedly using Iraqi ports for “opportunistic top-ups” and relying on Fujairah for their main bunker fuel purchases.
Oman Bunker Market
Oman’s bunker market remained stable in August with balanced demand and supply. A new government directive, part of the Vision 2040 strategy, has been implemented to empower local firms. This directive gives exclusive authorization to Omani companies with a Riyada card to supply fuel to ships via road tankers. While offshore supply via barges remains unaffected, this measure is aimed at strengthening the domestic economy and improving the reliability of services within the maritime sector.
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Source: S&P Global
