Tightness in the Fujairah HSFO market has left its premium to Singapore’s prices at the widest level in 18 months, reports Ship & Bunker.
High power generation demand for fuel oil
HSFO at Fujairah stood at $502.50/mt on Wednesday, according to Ship&Bunker pricing, $32/mt higher than Singapore’s level. The spread was the widest since June 2020.
A local market source told Ship&Bunker the supply tightness was driven by high power generation demand for fuel oil.
In a panel appearance at the IBIA annual convention this week Colin Holloway, the Dubai-based head of technical at Cockett Marine Oil, said few suppliers at Fujairah were currently able to offer HSFO, but that the problem was likely to be temporary with more planning to take on supplies soon.
A total of five suppliers currently offer HSFO at the Middle Eastern hub, Holloway added, up from a recent low of three suppliers and with more expected to join the market if demand continues to rise.
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Source: Ship & Bunker
