Home / Shipping News / Port News / Fujairah MF market may garner further support on tight availability: traders

Fujairah MF market may garner further support on tight availability: traders

Fujairah marine fuel 0.5%S bunker market may firm up further going into November due to thin product availability, traders said Oct. 29.

Market sources attributed a supply crunch, especially for delivery into the spot market on a prompt basis, to a fair share of IMO-complaint fuel to have found its way to Singapore in the not-so-distant past on relatively better pricing economics in the world’s largest bunkering port.

The differential between Singapore gasoil 10 ppm cargo and FOB Singapore marine fuel 0.5% cargo averaged at a discount of $21.48/mt in September, while the spread between Singapore gasoil 10 ppm cargo and FOB Fujairah marine fuel 0.5% cargo assessments averaged $30.56/mt, thus making the product more valuable in Singapore last month.

Further, Singapore-delivered marine fuel 0.5% bunker prices averaged $307.61/mt in September, a month in which the port had posted a third consecutive rise in total bunker sales. This compared with a daily average of $298.54/mt for the same grade delivered in Fujairah for September, S&P Global Platts data showed.

“A good chunk came to Singapore, so supply [in Fujairah] got tightened up,” said a trader at one of the largest suppliers of bunker fuel in Fujairah.

The exit of GP Global, an erstwhile major supplier of bunker fuel in the middle eastern port, had also meant that the remaining and relatively fewer suppliers has had to step up spot market operations to meet demand, which rose 12.8% on the year to 462,939 mt in September.

The embattled company is currently in the midst of a financial restructuring, which includes stake sale of its terminal at Fujairah.

According to UAE-based market participants, at least one major supplier of bunker fuel at Fujairah has oil stored at GP Global’s terminal which it has not been able to load out due to ongoing financial restructuring talks.

“I’m not sure how much of it is locked up, but even 40,000-50,000 mt is a lot these days as it accounts for over 10% of [Fujairah] market,” said a bunker supplier.

Tight product availability has led the differential for Fujairah-delivered marine fuel 0.5% bunker over Singapore gasoil 10 ppm cargo to average a premium of firm up from a discount of $1/mt so far this month as compared to a discount of $13.46/mt in September, Platts data showed.
Source: Platts

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping