Fujairah Bunker Fuel Sales Fall to Four-Month Low in June

By Jeslyn Lerh

SINGAPORE, July 19 (Reuters) – Marine fuel sales at the United Arab Emirates’ Fujairah, third largest bunkering hub in the world, fell to a four-month low in June as high bunker premiums and tight supplies capped uptake.

Total bunker sales volumes were down 13% month-on-month at 647,184 cubic metres (about 619,602 tonnes) in June, based on latest data from the Fujairah Oil Industry Zone published by industry information service S&P Global Commodity Insights.

“Fujairah barges have been trading above Singapore since mid-June. Both bunkering hubs have been experiencing a shortage of low-sulfur blend components which is creating tightness in the physical market,” said Timothy France, MENA senior oil analyst at Refinitiv Oil Research.

“Higher bunker premiums appear to be weighing on demand. Refinitiv shiptracking data indicates a slowdown in bunker sales through late June and July,” he added.

Combined low-sulphur bunker sales in June sank 13% to 514,494 cubic meters from May, while its market share of overall bunker volumes was steady from May at 79%.

Meanwhile, sales of 380-cst high-sulphur fuel oil (HSFO) fell 14% from May to 132,690 cubic meters in June, making up 21% out of overall bunker volumes.

The trend was in line with lower monthly sales at top bunkering hub Singapore, when marine fuel sales for June fell to a two-month low as high premiums for low-sulphur bunker fuel diverted demand to other bunkering ports.

Total volumes by month:

2022	Total bunker sales (in cu m)	m-o-m % change
Jan	646,089	0%
Feb	612,388	-5%
Mar	691,141	13%
Apr	664,870	-4%
May	745,064	12%
Jun	647,184	-13%

Breakdown by grade for current month:

2022	Total low sulphur bunker sales	m-o-m % change	180cst LSFO	380cst LSFO	MGO	LSMGO	380cst HSFO	m-o-m % change	Lubricants	m-o-m % change
Jan	526,342	0%	288	497,670	1,215	27,169	119,747	–	5,341	–
Feb	486,999	-7%	150	462,035	1,395	23,419	125,389	5%	5,234	-2%
Mar	561,848	15%	369	527,677	1,096	32,706	129,293	3%	5,469	4%
Apr	548,249	-2%	1,084	512,565	1,873	32,727	116,621	-10%	5,193	-5%
May	590,343	8%	453	555,151	1,087	33,652	154,721	33%	5,713	10%
Jun	514,494	-13%	372	482,926	1,287	29,909	132,690	-14%	5,036	-12%

(Reporting by Jeslyn Lerh; Editing by Rashmi Aich)

(c) Copyright Thomson Reuters 2022.