World News
Fujairah and Singapore Seeing "Healthy" Bunker Demand
In a continuing reversal of the recent trend, demand for bunker fuel in Fujairah as well as Singapore has been healthy over the past week, FEDCOM and S&P Global Platts report.
Fujairah 380 CST delivered bunker fuel continued to be priced at a premium of about $1/mt over Singapore, down from $2-$3/mt the previous week, the report assessed.
Fujairah's stock of heavy distillates and residues totalled 10.787 million barrels on August 28, up 76,000 barrels or 0.7% on the week.
Fuel-oil demand in the Middle East was reported to have been more robust than usual this summer because Saudi Arabia has been substituting fuel oil for part of the crude it burns at its power stations in summer to support peak demand for electricity to run air-conditioning.
"The Kingdom does not have enough gas to meet peak summer demand from its predominantly thermal power plants while also supplying increasing direct demand for gas from its industrial and petroleum sectors," the report said.
"Nonetheless, with summer drawing to a close, reducing local fuel oil demand, the Middle East will be well positioned to export the product in the coming weeks and months. Moreover, S&P Global Platts has estimated that about 230,000 mt/month of gasoline production capacity has been lost at Ruwais since January due to the fire, which means a substantially increased yield of fuel oil from the refinery if crude processing remains constant."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 644.50 | 2.50 | 765.00 | 14.00 |
| Fujairah | 650.50 | 1.00 | 882.50 | 6.00 |
| Rotterdam | 607.50 | 0.50 | 764.50 | 24.50 |
| Houston | 632.50 | 4.00 | 807.50 | 5.00 |
| Global 20 Ports Average | 665.50 | 6.50 | 870.50 | 14.50 |
| Global 4 Ports Average | 635.50 | 3.50 | 810.00 | 17.50 |
| Global Average Bunker Price | 725.00 | 2.50 | 925.50 | 8.00 |
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