EMEA News
Bunker Demand Spikes 20% in a Week at Fujairah
Demand for bunkers has over the last week spiked at Fujairah following collapse of bunker giant OW Bunker, Platts reports.
Demand at Fujairah has risen 20 percent week-on-week, which is said to be a fairly strong surge in a market that sees weekly enquiries for around 250,000 tonnes of bunkers.
One Dubai-based bunker trader said some sellers were only offering contracts from Novermber 17 onwards.
It is understood that Fujairah had recently been losing volume to Singapore as a result of competitive pricing there, with another trader suggesting events at OW Bunker had changed the environment.
"[Sellers] are taking more precautions," said a source in relation to credit terms now being offered by bunker sellers.
There has been no change to credit lines for many sellers in the Singapore market, it was said, although there is an increasing focus on credit checks.
According to the report, annual bunker sales volumes at Fujairah are on average around 24 million tonnes compared to 42.7 million tonnes traded in Singapore in 2013.
The Maritime and Port Authority of Singapore (MPA) has said it expects minimal disruption to Singapore bunker supplies following OW Bunker's collapse last week.
