Fujairah Sees "Lackluster" Bunker Demand as Stockpiles Rise

by Ship & Bunker News Team
Friday August 4, 2017

Fujairah this week saw its stocks of heavy distillate and residues rise 0.1% week on week by 10,000 barrels to reach 10.829 million barrels as of July 31, FEDCOM and S&P Global Platts report.

Bunker demand in Fujairah was reported as "mixed-to-lackluster" due to rising crude prices dampening buying interest.

Ship & Bunker data shows bunker prices were up slightly over the period, with average indications for key grade IFO380 on July 31 at $314/mt compared to $301/mt a week earlier.

"Sentiment in the Singapore market has also cooled, with one trader saying the market seemed 'balanced or weak'," the report added.

"Imports into Singapore are expected to rebound above 5 million mt in August after sinking to 3 million-4 million mt in July due to lower freight rates, which is likely to result in higher volumes flowing to Singapore from the Middle East.

"First/second month swaps for FOB Arab Gulf 180 CST were pegged at a backwardation of 50 cents/mt Tuesday, down from $1.65/mt a month ago."