Marine fuel sales at Fujairah Port, located on the eastern coast of the United Arab Emirates, decreased by 2.7% in August compared to July. This comes after sales in July had increased for the first time since the onset of the war between the United States and Israel with Iran in February. According to published data, total marine fuel sales in August reached 227,950 cubic meters, indicating a 65% decrease compared to the same period last year.
Factors Affecting Sales Decline
Suppliers are currently facing a shortage of marine fuel, leading to increased prices and limited availability of both high-sulfur and low-sulfur fuel types. According to four traders interviewed, one supplier is facing supply constraints due to an inability to provide a composite component. This, in turn, has led to improved demand in Fujairah for two consecutive months, but it remains below pre-war levels.
Read more: Oil Prices Drop Following Unexpected Rise in U.S. Crude Oil Reserves
Impact of Pricing on Demand
Some suppliers have been able to increase demand with "very aggressive" pricing. Additionally, the price of marine fuel 0.5%S at Fujairah Port significantly decreased in August compared to July, averaging $65.70 per metric ton. This is down from an average price of $88 per metric ton in July.
For low-sulfur fuel (LSFO) at Fujairah Port, delivery facts have currently reached an average of $99.86 per ton. Meanwhile, delivery facts for high-sulfur fuel (HSFO) increased to an average of $114.72 per ton in August. Given that output of petroleum products from the Gulf has been largely blocked due to existing tensions, this has led to an increase in HSFO fuel facts at Fujairah Port to an average of $135.95 per ton as of September 14.
Read more: Increase in Physical Oil Cargo Prices to Over $130 · Russia Extends Diesel Export Ban Until End of October
