Supply of very low-sulphur fuel oil (VLSFO) in Fujairah, UAE, has tightened after Abu Dhabi banned vessels carrying cargoes to and from Sudan, prompting a rise in delivered bunker premiums.
Fujairah, the world's third-largest marine fuels hub, is a key destination for Dar Blend and Nile Blend crude. These grades move from landlocked South Sudan to Sudan's Bashayer terminal and are processed into VLSFO by suppliers in Fujairah.
The Argus-assessed bunker premium for delivered Fujairah VLSFO rose to $10/t on 25 August against the Singapore 0.5pc marine fuel pricing basis — the highest in more than four months. It has averaged $6/t so far in August, up from $2.88/t in July and $3.94/t across January–July.
"The market is super tight and we could not get $3-4/t premium offers from sellers who have supplies," a Fujairah trader said.
Fujairah's delivered VLSFO price rarely trades above the equivalent delivered Singapore value. But on 25 August, it was $3.20/t higher — the highest premium since mid-March.
