EMEA News
Improving Saudi-Qatari Relationship Bodes Well for Fujairah Bunker Market
Signs of a rapprochement between Saudi Arabia and Qatar have started to emerge at the end of 2020, hinting at the possibility of a sharp recovery in Fujairah's bunker demand next year.
Earlier this month Saudi Arabia's foreign minister said a resolution to the dispute with Qatar was 'within reach', according to international media.
No imminent breakthrough is expected, but further efforts towards a resolution are likely to be a high priority in the new year as both countries seek to develop their relationship with the incoming Biden administration in Washington.
Fujairah's bunker market was one of the casualties of the diplomatic crisis between the two countries in June 2017.
Saudi Arabia, the UAE, Bahrain and Egypt broke off diplomatic relations with Qatar that month, accusing it of support for terrorism and criticising its relationship with Iran. This resulted in a ban on Qatari-flagged ships visiting their ports, meaning Qatar's gas carriers shifted their bunker demand from Fujairah to ports outside the Middle East.
Fujairah's bunker demand was around 12-15 million mt/year at its peak, according to local market sources, and is likely to be below 8 million mt in 2020. A rally all the way back to the previous record highs would take some time, but the possibility of a sharp recovery is something the bunker market should look out for in 2021.
