EMEA News
Iran Stops 380 CST Exports
Iran has unexpectedly stopped exporting 380 CST marine fuel oil, Reuters reports, citing a source at the National Iranian Oil Co. (NIOC).
"NIOC International and National Iranian Oil Products Distribution Company (NIOPDC) stopped exports about two weeks ago," the person said.
"Nobody knows how long it would take but it is not less than one month."
Sources suggested the country could be stocking up on the oil to generate power if gas supplies run low.
The Iranian 380 CST fuel makes up almost a fifth of monthly sales in Fujairah, a bunkering hub.
The interruption in supply comes as exports from the Middle East have fallen due to high summer demand, and supplies moving into Asia from the West have declined because of high freight rates.
Some traders said the halt could last for as long as three months.
"They [Iranians] are trying to stockpile some fuel oil cargos for October-November because there will normally be big shortages of gas so they have to burn a lot of fuel oil," one said.
Iran exports 300,000 to 400,000 tonnes of bunker grade fuel a month, with most sold in Fujairah.
"Bunker premiums are very very strong in Fujairah at the moment," said a Gulf-based marine fuel trader said.
The premium for 380 CST fuel in Fujairah has increased over the past several weeks, with the price there standing at $605.50 per metric tonne (pmt) on Thursday, compared with $594 in Singapore, according to Ship & Bunker data.
