Procurement fluctuations beset Fujairah market
The concertina effects of cargo influx followed by tight avails seen over recent months continued to beset the Fujairah bunker market today.
Supplier ENOC Bunkering (Fujairah), which accounts for an estimated 30 to 40% of the Fujairah market, told Bunkerworld that it was only able to meet enquiries for April 20 and beyond after it had sold out of its latest cargo.
"We have been seeing this trend in the market for several months," said Odysseus Goumas, General Manager for the United Arab Emirates (UAE) government-owned supplier.
James Hill, General Manager for Avin International told Bunkerworld today that fluctuating availability, seen so far this year, was a byproduct of Middle Eastern refiners shifting their priorities towards the cargo and utilities markets, where premiums exceeded those in the bunker market.
Hill warned: "I have difficulty in seeing the situation improve this year - we are seeing refiners look to take advantage of Chinese demand in the cargo market, but also the Middle East is using more oil for its own utilities if you look at Iran, Saudi Arabia and other countries."
Hill added that prices in Fujairah, traditionally $3 to $4 pmt lower than Singapore levels to account for additional freight costs to Asia, had remained very close to its Asian rival for most of 2004, due in part to availability difficulties.
Monthly sales in the Fujairah bunker market are estimated at between 600,000 and 700,000 metric tonnes (mt) per month, or around 7.5 million mt per annum, sources said.
With demand in the first quarter of 2004 viewed as steady by suppliers, it is estimated that between ten and 12 cargoes of fuel a month need to be imported into the bunkering hub to meet requirements.
Of the bunkering centre's other supplier FAL Energy and Abu Dhabi-based supplier ADNOC were reported to be quoting from April 16, Avin (April 17); Akron (April 18); FAMM (April 19); while Oil Marketing was reported to still have availability earlier today. Aegean Marine said it would be able to meet enquiries for small quantities from April 15.
Prices were seen as stable to soft with a spread of $170 per metric tonne (pmt) to $172 pmt for IFO380. Acquiring quotes for IFO180 proved more difficult, with product reported to be available at between $175 and $179 pmt. Marine gas oil (MGO) was seen pegged at around $310, with a spread of around $5 pmt either way, according to Bunkerworld indications today.
Supplier ENOC Bunkering (Fujairah), which accounts for an estimated 30 to 40% of the Fujairah market, told Bunkerworld that it was only able to meet enquiries for April 20 and beyond after it had sold out of its latest cargo.
"We have been seeing this trend in the market for several months," said Odysseus Goumas, General Manager for the United Arab Emirates (UAE) government-owned supplier.
James Hill, General Manager for Avin International told Bunkerworld today that fluctuating availability, seen so far this year, was a byproduct of Middle Eastern refiners shifting their priorities towards the cargo and utilities markets, where premiums exceeded those in the bunker market.
Hill warned: "I have difficulty in seeing the situation improve this year - we are seeing refiners look to take advantage of Chinese demand in the cargo market, but also the Middle East is using more oil for its own utilities if you look at Iran, Saudi Arabia and other countries."
Hill added that prices in Fujairah, traditionally $3 to $4 pmt lower than Singapore levels to account for additional freight costs to Asia, had remained very close to its Asian rival for most of 2004, due in part to availability difficulties.
Monthly sales in the Fujairah bunker market are estimated at between 600,000 and 700,000 metric tonnes (mt) per month, or around 7.5 million mt per annum, sources said.
With demand in the first quarter of 2004 viewed as steady by suppliers, it is estimated that between ten and 12 cargoes of fuel a month need to be imported into the bunkering hub to meet requirements.
Of the bunkering centre's other supplier FAL Energy and Abu Dhabi-based supplier ADNOC were reported to be quoting from April 16, Avin (April 17); Akron (April 18); FAMM (April 19); while Oil Marketing was reported to still have availability earlier today. Aegean Marine said it would be able to meet enquiries for small quantities from April 15.
Prices were seen as stable to soft with a spread of $170 per metric tonne (pmt) to $172 pmt for IFO380. Acquiring quotes for IFO180 proved more difficult, with product reported to be available at between $175 and $179 pmt. Marine gas oil (MGO) was seen pegged at around $310, with a spread of around $5 pmt either way, according to Bunkerworld indications today.
Alisdair Pettigrew | Wed Apr 14 14:58 GMT 2004