Bunker Fuel Demand Surges in Middle East Ports
In October, the demand for bunker fuels saw a significant uptick across several key ports in the Middle East, driven by robust pre-bookings and increased shipping activity along the India-Oman routes. Notably, Dubai experienced an 11% rise in total bunkering and ship-to-ship calls, reflecting a vibrant market. Meanwhile, Fujairah maintained steady demand for high sulfur fuel oil, while Oman’s marine gasoil supplies also showed a slight increase, indicating a stable regional market.
Dubai and Fujairah: Key Players in Bunker Fuel Market
Dubai’s bunker fuel market demonstrated remarkable growth in October, with total bunkering and ship-to-ship calls climbing nearly 11% month-on-month to reach 133, according to S&P Global Commodities at Sea data. A Dubai-based trader noted the competitive improvement attributed to strong pre-bookings and heightened demand from bulk carriers heading to India and Oman. Despite the rising demand, the average price for 0.5% sulfur marine fuel in Dubai decreased by $32.40 per metric ton, closing at $484.72 per metric ton at the end of October.
Fujairah also reported stable bunker demand, particularly for high sulfur fuel oil, which benefitted from increased bulk carrier activity and adequate product availability. The price for 3.5% sulfur HSFO delivered in Fujairah fell by $2.86 per metric ton throughout October, ending the month at $384.54 per metric ton. This price maintained a discount of $7.59 per metric ton compared to Singapore. Additionally, heavy distillate stocks at Fujairah surged by 47% since the end of 2024, indicating a healthy supply chain.
Oman and Iraq: Stability Amid Growth
Oman’s bunker market remained stable in October, with consistent demand for marine gasoil across key ports such as Muscat, Sohar, Salalah, and Duqm. An Oman-based supplier reported a marginal increase in marine gasoil supplies, which rose by 668 metric tons to reach 5,000 metric tons. This growth was supported by smooth operational conditions and a notable surge in gasoil demand since September, with approximately 2,500 metric tons supplied at Salalah in October. The average price for low-sulfur marine gasoil delivered in Salalah was assessed at $846.22 per metric ton, reflecting a $4.17 increase from the previous month.
In Iraq, steady bunker demand was bolstered by strong activity at southern ports. Khor Al Zubair handled 479 vessels in October, while the Al Basra Oil Terminal managed 305 vessels, according to Sea Crown Marine Services DMCC, Iraq’s sole bunker fuel supplier. A recent Platts Bunkerworld survey indicated that bunker volumes at Iraqi ports rose by 5,000 metric tons in October, reaching a total of 31,000 metric tons, up from 26,000 metric tons in August. The average price for 0.5% sulfur marine fuel delivered in Basrah decreased by $9.75 per metric ton, closing at $507 per metric ton, showcasing a dynamic and evolving market landscape in the region.
