EMEA News
Jeddah Players Inactive on Low Bunker Prices
Low bunker prices have caused a reduced number of suppliers in the Jeddah, Saudi Arabia bunker market, Platts reports.
Market sources say that only two of the five physical bunker fuel suppliers in the Jeddah market are still active, Saudi Shipping & Maritime Services Company (Tranship) and International Bunkering Company.
"The number of suppliers in the market is down and avails are on the tight side," a Singapore-based broker was quoted as saying.
Ship & Bunker data shows IFO380 prices have been in the $170 to $180 per metric tonne (pmt) range after making a steady rise from the 12 month lows of $135 pmt at the beginning of February.
With National Bunkering Co Ltd. (National Bunkering) and Arabian Petroleum Supply Company (APSCO) both said to be now inactive in the market, an estimated 13,000 mt per month of 380 CST is said to have been removed from the market since the beginning of 2016.
"APSCO has not loaded any bunker fuel [in Jeddah] for three months now, and they have diverted their barges from Jeddah to Khor Farkkan," a source in the shipping market is reported to have said.
APSCO's operations manager is reported to have said that the company will not be supplying bunker fuel in Jeddah for the next six months, although he did not comment on the company's plans after that time.
Meanwhile, National Bunkering's operations manager has said that the company ceased its operations in December of last year.
Sources within the market have also said that Bakri International Energy Company, the third Jeddah supplier, has been receiving less supply from Saudi Arabian Oil Company (Aramco).
"Aramco takes a lot of bunker fuel during winter for internal use, but this [drop in supply] has been going on for some time, and nobody knows why," said a source from Bakri International Company,
An Aramco trader based in Singapore is reported to have said that the supply drop was caused by "an operational issue," and Jeddah currently has no bunker fuel shortage.
