SINGAPORE: Sales of marine fuel, also known as bunker fuel, recovered in April at the UAE’s Fujairah after hitting record lows in March, latest Fujairah Oil Industry Zone data showed.
Bunker sales at Fujairah provide a gauge of shipping market sentiment in the Middle East, as Fujairah is the world’s third-largest bunkering port and a key transit and blending hub for oil products.
Total bunker volumes, excluding lubricants, rose to 596,330 cubic metres (about 591,000 tonnes) in April, based on data from the Fujairah Oil Industry Zone published by industry information service S&P Global Commodity Insights.
Bunker sales in April rebounded by 6.5% month-on-month, though compared lower by 10.3% from the same month last year.
The rebound was driven by firmer high-sulphur bunker sales, which recovered by 56.6% month-on-month to 126,943 cubic meters (about 126,000 tonnes).
Meanwhile, low-sulphur bunker sales in April totalled 469,387 cubic meters (about 465,000 tonnes), easing 2.0% from last month. This brought the market share of low-sulphur bunkers to 79% and of high-sulphur bunkers to 21% in April, versus 86% and 14% in March, respectively.
But overall demand for bunkers at Fujairah had been lukewarm in May so far, Dubai-based trade sources said.
Asia Fuel Oil: Spot premiums stable
Fujairah prices for delivered 0.5% marine fuel have dropped in May to single-digit premiums versus benchmark Singapore cargo quotes.
This compared lower with Singapore 0.5% marine fuel premiums, which were between $20 to $30 versus cargo quotes this month.
Demand at world’s largest bunker hub Singapore rebounded in March and April as vessel calls for bunkering hit two-year highs.
Comments
Comments are closed for this article.