The price of LSMGO (Light Sulfur Marine Gas Oil) at Fujairah port has reached approximately $430 per ton compared to Singapore, which is an increase from $250 at the beginning of September. This $180 increase in premium indicates significant changes in the marine fuel market.
Monthly Average and Supply Status
The monthly average price of LSMGO at Fujairah port in October reached about $1,720 per ton, the highest level since November 2021. Additionally, the premium of this port compared to Singapore reached $460 per ton on October 19. However, the supply of LSMGO and HSFO (High Sulfur Fuel Oil) at Fujairah port remains limited, and ship traffic through the Strait of Hormuz is disrupted due to international tensions between the United States and Iran.
Read more: Fire on Five Tankers and a Tugboat in the Strait of Hormuz
Inventory and Demand Status
Fuel oil inventories at Fujairah port in October were reported to be on average 9% lower than in September. Data shows that middle distillate inventories have also decreased to 2.40 million barrels, with a reduction of 27,000 barrels. A source in the region stated that Fujairah is vulnerable to sudden changes in fuel availability, especially due to reduced barge capacity and balanced demand amid escalating regional tensions and attacks on ships.
Furthermore, the price of VLSFO (Very Low Sulfur Fuel Oil) at Fujairah port has been trading at an average discount of about $20 per ton compared to Singapore from October 27 to November 2. On October 30, the price in Singapore reached about $1,000 per ton, while fuel oil inventories have decreased and supply flows have diminished. Last week, the delivery time for VLSFO at Fujairah port averaged 13 days, with some suppliers recommending longer times.
On November 3, this gap reversed, and the price of VLSFO in Fujairah increased by $20 per ton while the price in Singapore decreased by $20 per ton. Currently, the price of VLSFO in Fujairah is trading at a premium of $20 per ton compared to Singapore, whereas on September 1, this figure was $50 per ton. Overall, the inventory situation of VLSFO in Fujairah has improved.
