Heightened regional tensions appear to be taking their toll on bunkering operations at the UAE’s Fujairah, until recently the world’s second largest bunkering port. Multiple reports indicate that the latest heightening of tensions in the Strait of Hormuz, especially with six tankers recently attacked in the vicinity of Fujairah (MEES, 14 June). Reuters this week reported that while HSFO at Fujairah until recently traded at around a $10/ton premium to Singapore, it has recently slipped to a discount of as much as $70/ton amid weakening demand.

Fujairah had already been caught up in regional geopolitics as the UAE’s embargo on Qatar since July 2017 meant it could no longer service Qatari-flagged vessels. As well as to Singapore, Fujairah has been losing trade to its regional rival Sohar in Oman, where plans for LNG bunkering progressed this week (MEES, 19 July). (CONTINUED - 140 WORDS)