Ship refuelling at Fujairah, a key bunkering hub in the UAE, has slowed following a fire linked to debris from a drone interception amid escalating U.S.-Iran tensions. While some bunker deliveries are currently on hold as stakeholders seek clarity, others report that bunkering operations can still proceed. Oil storage firm Vopak has temporarily suspended vessel loading at its Fujairah terminal, although it remains operational, while VTTI has also halted its activities.
The conflict has disrupted regional fuel shipments, causing a spike in prices at Fujairah and potentially redirecting demand to other ports like Singapore. With transit through the Strait of Hormuz nearly halted due to vessel incidents, bunkering at Fujairah continues, but sales have stalled as marine fuel prices surged. Low-sulphur marine fuel premiums at the port increased significantly, reflecting concerns over supply disruptions.
As demand in Fujairah declines, traders anticipate a shift towards other bunkering hubs in Asia, Rotterdam, and India. Spot demand at Singapore has already risen as shipowners rush to secure fuel, and further price increases are expected if the conflict persists. Current caution among shippers may lead to a bottleneck in Strait of Hormuz traffic, affecting bunker fuel supplies in Singapore.
