FUJAIRAH DATA: Feb bunker sales fall 10% on month amid slower freight market

Bunker sales at the UAE's Port of Fujairah fell for a second consecutive month to hit a record low of 576,920 cubic meters in February, down 10% from January and down 6.6% year on year, Fujairah Oil Industry Zone data showed March 17.

Sales of International Maritime Organization-compliant bunker fuel with 0.5% sulfur content, including 180 CST and 380 CST grades, fell 14.1% month on month to 390,089 cu m in February, and were down 15.6% year on year.

Total sales of low sulfur fuel oil were the lowest since FOIZ began providing the data to S&P Global Commodity Insights in 2021.

Suppliers have been grappling with low sulfur fuel oil demand since February amid a slower freight market as buyers downsized bunker requirements and fewer inquiries were seen, Fujairah-based traders said.

The slump in LSFO bunker demand and inflow from neighboring Kuwait have also added to a stock build, pressuring downstream bunker premiums, traders also said.

The Platts Fujairah-delivered marine fuel 0.5%S bunker premium to benchmark FOB Singapore Marine Fuel 0.5%S cargo values slumped to average $14.11/mt in February from $27.25/mt in January, and slipped further to average $7.96/mt over March 1-16, according to S&P Global data.

Sales of high sulfur fuel oil bunkers bucked the overall downtrend to reach a record high of 159,908 cu m in February, up 5.9% on month and 27.5% higher year on year, the FOIZ data showed.

An uptick in HSFO demand owing to substantial stem sizes during the second half of February lifted overall sales volumes, while the flurry of barge refueling activities tightened ex-wharf loading availabilities and buoyed bunker prices, local traders said.

The Platts Fujairah-delivered 380 CST HSFO bunker premium to FO 380 CST 3.5% FOB Arab Gulf cargo assessments strengthened to average $48.51/mt in H2 February from $26.99/mt in H1 February, and remained relatively steady at $48.29/mt over March 1-16, S&P Global data showed.

Low sulfur marine gasoil sales fell 29.8% on month and were down 7.5% year on year at 21,661 cu m in February, the lowest since March in 2021, FOIZ data showed.

Fujairah bunker sales in February:

(Unit: cu m)

Source: Fujairah Oil Industry Zone