UAE port sees bunker volume recovery. File Image/Pixabay
Bunker fuel sales at the Gulf bunkering hub of Fujairah have recovered from their earlier dip caused by political tensions in the region.
The volume of bunker fuel sold at the United Arab Emirates port, which dropped by a quarter in 2017 over the previous year, moved back to around 9 million metric tonnes (mt) last year, according to market sources cited by fuel price reporting agency SP Global Platts.
However, the fall out from regional political disagreements between Qatar and its neighbours has not been eradicated completely.
"Total sales in 2018 grew perhaps slightly from 2017 but were still pretty stable. Sanctions on Qatar killed some of the market demand two years ago and that is not coming back," a trader was quoted as saying.
Some more competitive pricing in the port in the latter part of the year is behind the incremental growth, sources said.
According to Ship and Bunker's figures, the average value of the key 380 centiStoke grade of fuel oil in Fujairah over the last six months is $338 per mt and a dollar under the Singapore average for the same period.