Fujairah-delivered low sulfur bunker premium at all-time high on tight availability
22nd June 2022 12:22 GMT

 

The premium for IMO-compliant marine fuel delivered at Fujairah surged to an all-time high June 21 on tight availability of finished bunker grade material, especially for prompt delivery.

 

Platts had assessed Fujairah-delivered marine fuel 0.5%S bunker premium over benchmark Singapore marine fuel 0.5% cargo assessments $9.74/mt higher on the day at $132.74/mt June 21, the highest since the assessment was launched on July 1, 2019, data by S&P Global Commodity Insights showed.

The premium for the grade delivered at the Middle Eastern port has skyrocketed from $44.12/mt at the start of the month to surpass its previous high of $126.32/mt reached on Jan. 6, 2020.

Even as tight availability of low sulfur material has remained a widespread issue globally, including in Fujairah, in the recent past, maintenance at one of the Fujairah-based producers' refining units had exacerbated the situation, UAE-based traders said.

Supply was expected to ease from early next week when the unit was likely to come back online, but this was not confirmed, a Fujairah-based trader said.

"In this situation, whoever has cargo and also has available [barging] slots to service any prompt inquiry, is also the price maker," the trader added.

Bunker sales at the Port of Fujairah rose 11.45% on the month to reach the second highest on record in May, S&P Global reported on June 16 citing data published by Fujairah Oil Industry Zone on its website.

Bunker volume jumped to 746,777 cubic meters, the most since a record 782,060 cu m was set in October 2021, the FOIZ data compiled by S&P Global showed. Sales rebounded from a two-month low of 670,063 cu m in April.


Bunkerworld .,
22nd June 2022 12:22 GMT