Fujairah bunker demand picks up as price spread to Singapore widens: sources
Lower prices compared to the Singapore port had diverted some demand away to the Fujairah port in recent days, trade sources said this week.
“We do see more inquiries these days especially from tankers, the difference is quite wide compared to Singapore prices,” a bunker trader in Fujairah said.
“Some of our customers have gone to Fujairah to take bunkers instead as prices are more attractive there for now… though it also depends on their vessel route,” a bunker trader in Singapore said.
The Fujairah/Singapore delivered 380 CST bunker fuel price spread averaged minus $11/mt over January to date, compared with an average of plus $3/mt over December, Platts data showed.
The spread stood at minus $16.50/mt at Tuesday’s close, with delivered 380 CST Fujairah bunker fuel assessed at $389.50/mt and delivered 380 CST Singapore bunker fuel assessed at $406/mt, the data showed.
“It was still quiet at the early start of the month but demand is not too bad recently,” a bunker supplier in Fujairah said.
“Our inquiries have gone up by about 10% week on week,” the supplier added.
Meanwhile, buying interest in the Singapore market ranged from average to thin. Singapore and Fujairah are among the world’s largest bunkering hubs.