Cargo shipments and bunkering operations have been gradually returning to normal in the UAE's port of Fujairah, the Middle East's main oil storage and bunkering centre, following disruptions caused by heavy rainfall and floods at the end of July.
Major cargo and bunker suppliers, including Gulf Petrol Supplies and Uniper, which had declared force majeure, have resumed barge loading and bunker delivery operations.
"We have nearly eliminated the consequences of the flooding, and things are getting better", a supplier said.
The disruption has created a backlog of bunker delivery commitments which has been slowly clearing up.
The resumption of bunker supply operations has weighed on very low-sulphur fuel (VLSFO) prices and premiums. Although prompt delivery values are still at premiums of $60-80/t to forward dates, the price spread between Fujairah VLSFO and rival Singapore bunker prices narrowed significantly over this week.
Fujairah's delivered VLSFO premium to the equivalent Singapore price narrowed to $91.83/t on 10 August from a record high of $179.25/t on 4 August, while its premium to the Singapore 0.5pc marine fuel cargo assessment, used as a price basis by Fujairah bunker traders, fell from a record high of $228.25/t to $137/t over the same period.
