Fujairah has seen elevated bunker prices over the past month. File Image / Pixabay
Stocks of fuel oil at the Middle Eastern hub of Fujairah have rebounded from a two-year low and bunker prices started to fall relative to other ports after an unexpected outage at a local refinery.
Heavy distillate and residue stocks at the port jumped by 16% on the week to 8.236 million barrels as of March 29, according to data from the Fujairah Oil Industry Zone and price reporting agency S&P Global Platts. The storage category includes both high- and low-sulfur bunker fuels, as well as fuel oil used for industry and power generation.
Bunker prices at the port rose sharply earlier this month on limited supplies after an unexpected shutdown of a crude distillation unit at Uniper's Fujairah refinery.
VLSFO at Fujairah was selling at an average premium to Singapore's levels of $20/mt on Tuesday, according to Ship & Bunker pricing, down from a recent peak premium of $44.50/mt on March 17 but still significantly wider than the $5.50/mt premium seen at the end of February.