Ship fuel sales at the Port of Fujairah, the world’s third-largest bunkering hub, dropped 8.4% month over month in June to 567,061 cu m, the lowest in four months when sales were at a record low, according to Fujairah Oil Industry Zone data published July 15.

The total was down 7.9% from a year earlier, with low-sulfur fuel oil’s share falling to 65% in June from 67% in May, and high-sulfur fuel oil’s share rising to 28% from almost 27% over the same period. The record-low volume was 558,300 cu m in February.

In the first half of 2025, Fujairah’s bunker sales across all grades declined 5.3% year over year to about 3.70 million cu m.

The sharpest decline was observed in the HSFO segment, which fell by 6.8% year over year, while LSFO, including both the 180 CST and 380 CST grades, dropped by nearly 5.6% compared with the previous year.

All categories showed declines for June except low-sulfur marine gasoil, which increased 7.5% from May. Compared with a year earlier, LSFO 380 CST grade sales declined 11% over the same period, marine gasoil was down 59% and HSFO 380 CST was off 2.9%.

LSFO sales in June, including both the 180 CST and 380 CST grades, shrank 14.1% year over year and declined 11.6% month over month to a record low of 368,688 cu m, the lowest level since FOIZ sales data became available in January 2021.
Market trend

Uneven LSFO demand in Fujairah in June persisted into July, fueling pessimistic forward sentiment as suppliers remained concerned about thin profit margins amid steady ex-wharf cargo valuations, while downstream premiums continued to be weak.

An abundant supply of upstream LSFO cargoes also weighed on overall valuations, as the hub received Suezmax-sized replenishment cargoes sourced from Kuwait’s Al Zour refinery, according to industry sources.

The Platts-assessed Fujairah-delivered marine fuel 0.5% sulfur bunker premium over the benchmark FOB Singapore marine fuel 0.5%S cargo averaged $4.59/mt in June, down from $6.42/mt in May, and continued to decline to $4.03/mt so far in July. Platts is part of S&P Global Commodity Insights.

HSFO bunker sales totaled just 160,106 cu m, marking a four-month low, despite a 6.8% year-over-year increase.

Although HSFO cargo and delivered valuations were notably weak and fell into deeper discounts in June due to a supply overhang, differentials have strengthened in recent weeks as more HSFO barrels were absorbed by Egypt to meet summer power generation demand. Meanwhile, some Middle Eastern and Russian barrels were exported to China for use as refinery feedstock.

Nevertheless, HSFO stocks remained largely adequate, with export outlets providing some support to overall valuations. However, any significant upswing in valuations could be limited, as downstream suppliers continue to compete aggressively to reduce inventories.

In both the LSFO and HSFO segments, from June through to the present in July, the majority of suppliers were eager to capture demand and fill the available barge slots, including for prompt refueling requirements.

The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium over the FO 380 CST 3.5% FOB Arab Gulf averaged just $3.72/mt in June, nearly four times lower than the $14.35/mt recorded in May, according to Platts data, and rebounded to $14.06/mt over July 1-15.
Source: Platts