Soaring Bunker Fuel Sales in Fujairah
The Middle Eastern fuel hub of Fujairah, which trails only Rotterdam and Singapore in the global marine fuels market, witnessed a dramatic uptick in sales in July 2023. The momentum is built on the highest level of bunker fuel sales ever recorded for the region. Going beyond lubricants, total sales recorded a staggering 659,566 m3, drawing on figures from the Fujairah Oil Industry Zone and S&P Global Commodity Insights.
Reflecting a substantial escalation, sales were higher by 9% compared to June’s figures. This was, admittedly, marginally lower (0.8%) than the tally in July of the previous year, yet it recorded the highest monthly total since December. Average sales over the preceding 12-month period were exceeded by a significant 3.8%.
Singapore’s Steady and Significant Progress
By comparison, Singapore, reigning as the world’s topmost marine fuels hub, demonstrated progress on several fronts. Both standard and biofuel bunker sales noted a year-on-year growth of 9.3%. When compared with the previous month, the growth was an impressive 14.9%, as of July.
In-depth Look at Fujairah’s Performance
A more robust breakdown of the sales in Fujairah illustrates some eye-catching numbers. July saw a mammoth 386% increase compared to the previous year for 180 CST VLSFO sales, totaling 1,272 m3. HSFO sales witnessed a buoyant leap of 55.3% to 174,227 m3, while MGO sales grew by a noteworthy 34.4% to 1,387 m3.
In spite of these impressive leaps in sales, 380 CST VLSFO sales dipped slightly by 11.3% to 459,665 m3. Similarly, LSMGO sales saw a 30.8% decrease, taking the total to 23,015 m3. HSFO claimed an enlarged market share of 23.7% last month, a noticeable rise from its 16.9% share a year prior.
Competing Prices of VLSFO Across Fujairah and Singapore
Amidst these trends, Fujairah’s average VLSFO price in July stood at $575/mt, a small decrease of 2.5% compared to the previous month. This was also significantly lower (47.9%) than the corresponding price the year before, using data from Ship & Bunker.
Singapore, in contrast, pegged its average VLSFO price in July at $586/mt, a negligible 0.4% decrease from June. This was a reduction of 41.7% compared to the price recorded a year earlier.
A World-view of Bunkering Ports Prices
Ship & Bunker’s G20-VLSFO Index, which tracks average prices across 20 premium bunkering ports, demonstrated a monthly growth of 1.4%. On the flip side, it experienced a 38.5% dip on the year to $603/mt as recorded in July. This provides a well-rounded perspective on the performance and pricing trends of the global bunkering industry.
