FUJAIRAH DATA: April bunker sales jump 6.6% from record low

Ship fuel sales in April at the UAE's Port of Fujairah, the world's third-largest bunkering hub, touched a three-month high of 600,600 cu m, 6.6% higher than in March on signs of buyers taking advantage of a dip in prices for high sulfur fuel oil, according to data from the Fujairah Oil Industry Zone and S&P Global Commodity Insights.

The total was up for the first time in four months after hitting 563,275 cu m in March, the lowest since FOIZ began providing the data to S&P Global in January 2021. The total was still down 10.4% from a year earlier. Singapore and Rotterdam are the world's largest bunker suppliers.

HSFO sales at Fujairah jumped 56.6% on the month to 126,943 cu m in April, up 8.9% from a year earlier, the FOIZ data showed.

Demand was buoyed by relatively lower prices, with the Platts Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo assessments down to an average of $28.81/mt in April from $45.26/mt in all of March, S&P Global data show. The premium has since widened to $35.23/mt May 2-15. Traders also noted some large orders filled in the second half of April, although demand has since steadied for May so far.

Rising demand from the scrubber-fitted tanker segment contributed significantly to HSFO sales, local bunker suppliers said. HSFO can be used by shippers by using scrubbers that reduce the sulfur quantity to no more than 0.5%, meeting 2020 International Maritime Organization rule.

Low sulfur fuel oil sales, with a maximum of 0.5% sulfur content and inclusive of both the 180 CST and 380 CST grades, totaled 442,392 cu m in April, down 13.9% on the year and 2.1% lower than in March, the FOIZ data show.

The temporary shutdown of both crude distillation units at Kuwait's Al-Zour refinery, which had been supplying LSFO to the Fujairah market, did not provide much support to Fujairah sales due to "lukewarm" demand and ample inventories, UAE-based traders said.

The Platts Fujairah-delivered marine fuel 0.5% sulfur premium over the benchmark FOB Singapore marine fuel 0.5% sulfur cargo assessments averaged $11.34/mt in April, up from $8.81/mt in March. So far this month through May 15, the premium has dropped to $8.48/mt, S&P Global data show.

Despite the lower premiums, traders said the nearby port at Sharjah's Khor Fakkan in the UAE has been pricing HSFO below Fujairah, putting demand in Fujairah at risk.

Among other bunker products, sales of low sulfur marine gasoil slipped 18.3% year on year to 26,738 cu m for April, up 0.7% from March, the FOIZ data show.

Fujairah bunker sales in April

Unit: cubic meters

Source: Fujairah Oil Industry Zone