Fujairah ship refuelling slows as fuel supply, prices tighten

Demand to firm in other hubs

Low-sulphur marine fuel offers at the port rose to premiums of more than $30 per tonne to Singapore fuel oil quotes from $10–$15 last week, sources said, while high-sulphur fuel shifted to premiums from discounts.

With consumption slowing in Fujairah, traders expect demand to shift to other hubs in Asia, Rotterdam, the Mediterranean, Colombo and India if tankers avoid the Middle East or vessels remain stranded in the Gulf.

Spot demand at the world's largest bunkering port Singapore was already brisk late on Monday as shipowners sought to secure fuel before prices rise further, suppliers and traders said.

"Demand will surge in the following weeks if the war continues and premiums will definitely follow due to the disruption in supply," one of them said.

The sources declined to be named as they were not authorised to speak to the media. Prices and margins for high-sulphur fuel oil in Asia rose sharply on Monday after Brent crude futures jumped.

"Current shipper caution means a gridlock on Strait of Hormuz transited volumes for now, and extended disruptions will curtail bunker fuel supply in Singapore," said Royston Huan, a senior oil products analyst at consultancy Energy Aspects.

(Reporting by Jeslyn Lerh in Singapore; Additional reporting by Anushree Mukherjee in Bengaluru and Sarah El Safty in Dubai; Editing by Florence Tan and Nivedita Bhattacharjee)