FUJAIRAH DATA: August bunker fuel sales resume decline after July increase

Ship fuel sales at the Port of Fujairah in the United Arab Emirates dropped 2.7% in August compared to July, according to port data released on September 15. This marks the first decrease since sales surged in July, following the start of the US-Israel conflict with Iran in February. In August, total bunker fuel sales amounted to 227,950 cubic meters, which is a 65% decrease year-over-year.

In July, sales had more than doubled compared to the previous month. Traders suggest that low inventory levels of ship fuel are causing premiums to rise, with limited availability of both high sulfur fuel oil and low sulfur fuel oil. One supplier mentioned that they are unable to obtain a blending component, which is limiting supplies.

While demand in Fujairah has improved for two consecutive months, it is still below pre-war levels. The traders noted that aggressive pricing by some suppliers has helped boost demand. According to Platts, which is part of S&P Global Energy, the average bunker premium for marine fuel at Fujairah was $65.70 per metric ton in August, down from the July average of $88/mt.

The average premium for low sulfur fuel oil (LSFO) at Fujairah in August was $99.86/mt, up from $99.86/mt in July. The average premium for high sulfur fuel oil (HSFO) at Fujairah in August was $114.72/mt, up from $113.77/mt in July. Platts data shows that the average premium for HSFO at Fujairah in August has been $135.95/mt through September 14.