Supply currently appears adequate despite the ongoing Iran conflict. File Image / Pixabay

Industry body IBIA may have a role to play in calming market tensions in the event of supply-shock claims about the current disruption in the Middle East becoming too overblown, according to its incoming and outgoing chairmen.

Supply has dropped to a near-standstill at Fujairah, the world's third-largest bunkering port by volume, and concerns are being raised over whether adequate supply can be maintained at various other locations around the world in the event of Asian refineries being cut off from Middle Eastern crude supply in the event of a prolonged conflict.

IBIA has already hosted an online meeting of its members to discuss the current market situation. Providing more opportunities like this for members to set out their challenges will be an important element of what the organisation can offer at the early stages.

"We can try and do these sorts of things again as this develops," Adrian Tolson of 2050 Marine Energy, taking over as chairman of IBIA as of April 1, told Ship & Bunker.

"It's such a fast-moving and evolving situation.

"If we start to see real strain in the supply structure, I think we'll have to try and see what we can do, and maybe that's just simply providing a forum for people to share what's going on and the challenges they're facing."

But moving beyond this, IBIA may also take on the job of correcting overblown rumours about the market that needlessly add to stress, according to Constantinos Capetanakis of shipping firm Star Bulk, Tolson's predecessor in the role.

"What IBIA should be doing - and does not need to do yet, because it's not there - is to dispel and possible misconceptions in the market, whether they are overly pessimistic or exactly the opposite," he said.

"We know within IBIA, not only from our global board, which has very reputable sellers within it, but generally through our membership and working groups, is that there is no real problem yet, retail-wise.

"It's much more expensive - we're talking about serious profiteering here - but there is no supply tightness in the sense that one cannot get it if you have the money to buy it."

"The herd mentality has taken centre stage. There is a lot of profiteering.

"Plus the situation shows one more element, it shows the complete lack of strategy on the part of many bunker buyers. Because you cannot implement any type of strategy with this crisis, it hits you in the face with huge premiums."

Tolson agreed that current concerns over supply may be overdone, and that IBIA might play a role in making that point to calm the market.

"There may be a shortage in the short term, because everybody's been buying bunkers quickly to cover ships, but the reality is I think there's enough fuel to go around at the moment," he said.

"As an association, one of the things we can do is to try and warn people of the consequences of panic buying and damp down the excitement."