Business

Argus Media: Bunker fuel sales fall and premiums narrow in Fujairah

‘When someone bid at a $45/t discount, I responded “I will buy from you at that price rather than sell.” I shut my laptop and stopped working on that day,’ a bunker supplier said.

Published

6 years ago

June 8, 2020

Admin

Elshan Aliyev of the global energy and commodity price reporting agency Argus Media on Friday (5 June) published an analysis of bunker sales and premiums at Fujairah being squeezed as they narrow in a well-supplied market despite the rise in oil prices:

Marine fuel sale volumes at the Middle East’s main bunkering and storage hub of Fujairah, UAE, fell in May and in the first week of June.

Bunker sellers at the port linked the lower demand levels to the effects of the Covid-19 pandemic and to rising prices, which have been following crude higher.

“We have seen a fall in bunker demand because of Covid-19. The impact was less evident in March and April because contractual obligation had to be implemented. A number of vessels are stuck in [Asia-Pacific] and that is one of the reasons why we saw such a fall in May,” a bunker trader said.

Demand was partly curtailed because some larger tankers have been used as floating storage in the absence of vacant onshore capacity, meaning they did not need to use fuel. Stocks of various products have been high at Fujairah’s 10mn m³ of onshore storage in recent weeks, according to storage operators.

Fujairah does not publish official statistics, but the total amount of marine fuels involved in deals reported to Argus fell by around 11% in May from April, to 170,000t. Argus assesses delivered bunker stems for 0.5% very low-sulphur (VLSFO), high-sulphur fuel oil (HSFO) and low-sulphur marine gasoil (LSMGO) based on deals submitted by bunker suppliers, traders and vessel firms.

The amount of delivered VLSFO bunkers, the prevalent grade sold at Fujairah, fell by 16% on the month in May to 150,000t, as reported by market participants. Demand rose for HSFO 380cst fuel oil in May, with reported sales rising by more than 50% to 16,000t.

Overall demand may be lower because buyers choose to refuel in Singapore, to take advantage of the narrowing Singapore-Fujairah price spread from premiums of above $20/t in early May to parity or even small discounts from the middle of the month.

An increase in crude and cargo prices may have led bunker buyers to be more cautious in deciding the size of their purchases. As the average weekly VLSFO price rose from $191.50/t in early May to $262.50/t on 29 May, more bunker deals were fixed for small- and medium-sized cargoes, ranging as low as 150t and as high as 700t.

Although price rose, bunker sellers became increasingly anxious of premiums being squeezed in a well-supplied market. Suppliers typically sell cargoes at a discount to Singapore 10ppm gasoil spot assessments. At the start of May the discount was around -$12-14/t, some deals during the last week of the month were fixed at $27-35/t below the 10ppm gasoil prices. In the first week of June, the discounts were at -$40-45/t.

“When someone bid at a $45/t discount, I responded ‘I will buy from you at that price rather than sell.’ I shut my laptop and stopped working on that day,” a bunker supplier said.

Photo credit and source: Argus Media
Published: 8 June, 2020

Legal

Shell Singapore charged over Pulau Bukom oil leaks, reporting delays

Shell faces four charges under Singapore’s Prevention of Pollution of the Sea Act over two 2024 oil discharge incidents at its Pulau Bukom facility.

Published

18 hours ago

September 25, 2026

Admin

2 MPA craft (left) supporting Shell craft in the clean up operations of the oil sheens taken on 28 Dec 9am

Shell Singapore has been charged over two incidents in 2024 involving oily mixtures discharged into Singapore waters from its facilities at Pulau Bukom, according to media reports on Tuesday (22 September).

The company faces four charges under the Prevention of Pollution of the Sea Act, including allegations that it failed to report the discharges to the port master immediately.

The first incident occurred on 20 October 2024, when approximately 40 metric tonnes (mt) of oily mixture was discharged through a hole in a pipeline at the Shell Singapore Energy and Chemicals Park at about 8am.

Shell is accused of reporting the incident to the port master at about 12.55pm, several hours after the discharge occurred.

The second incident took place between 26 and 28 December 2024. An estimated 485kg to 956kg of oil mixture was discharged into Singapore waters from the same facility.

Shell is accused of failing to report the incident immediately, with notification to the port master made at about 11.50am on 26 December 2024, according to the charges.

Singapore’s pollution-prevention regulations require occupiers of such facilities to report oil or oily-mixture discharges into Singapore waters “without delay and to the fullest extent possible”.

Shell’s representative requested an eight-week adjournment at the 22 September hearing, citing the need to obtain internal instructions, appoint counsel and locate historical records. The company said the business associated with the incidents had been divested in 2025.

The case was adjourned to October. Shell is also facing prosecution by Singapore’s National Environment Agency over the same incidents.

Photo credit: Maritime and Port Authority of Singapore
Published: 25 September, 2026

Incident

MPA probes Singapore Strait collision involving fishing vessel, bulk carrier

MPA says there were no reported injuries among the crew of either vessel in the incident involving China-registered fishing vessel “Lu Qing Yuan Yu” and Panama-registered bulk carrier “First Margaux” .

Published

18 hours ago

September 25, 2026

Admin

Panama-registered bulk carrier “First Margaux”

The Maritime and Port Authority of Singapore (MPA) on Tuesday (22 September) said it is investigating the incident involving the China-registered fishing vessel Lu Qing Yuan Yu and the Panama-registered bulk carrier First Margaux in the Singapore Strait on 17 September.

MPA said there were no reported injuries among the crew of either vessel or pollution arising from the incident and navigational traffic was not affected.

Videos circulating on social media showed the bulk carrier colliding with the fishing vessel.

“The fishing vessel took on water during the incident but remained afloat and stable, with the crew taking measures to manage the situation onboard,” MPA said.

The vessel was subsequently towed to Raffles Reserved Anchorage for assessment.

Essential crew remained onboard to support the tow, while the Singapore Civil Defence Force supported the transfer of other crew to shore.

MPA added it also issued navigational safety broadcasts to keep other vessels clear of the tow and escorted the vessel into port with a MPA craft.

Photo credit: MarineTraffic / Arnold Pohen
Published: 25 September, 2026

Mass Flowmeter

TFG Marine deploys first MFM-equipped bunker barge in Jamaica

Bunker barge “Kingston Trader” is currently on its way to Jamaica following the successful installation of a Coriolis mass flow meter (MFM) system, certified to ISO 22192.

Published

18 hours ago

September 25, 2026

Admin

TFG Marine deploys first MFM-equipped bunker barge in Jamaica

Global marine fuel supply and procurement firm TFG Marine on Thursday (24 September) said its bunker barge Kingston Trader is currently on its way to Jamaica following the successful installation of a Coriolis mass flow meter (MFM) system, certified to ISO 22192.

The company said the latest installation brings the proportion of TFG Marine’s fleet equipped with MFMs to approximately 88%, marking another step in the continued rollout of this technology across its global bunkering operations.

“The barge will operate in Jamaica through our local partnership with Scott Petroleum, becoming the first bunkering vessel in the region equipped with this technology and bringing greater accuracy, transparency and assurance to fuel measurement for customers across the Caribbean,” TFG Marine said in a social media post.

“Together with Scott Petroleum, we look forward to working collaboratively with the Maritime Authority of Jamaica, the The Port Authority of Jamaica, Petrojam Limited and other stakeholders to share our experience of MFM technology, explore its wider benefits and support the continued development of bunkering standards across the region.”

Manifold Times previously reported TFG Marine continuing to expand MFM technology across its US Gulf Coast bunker fleet with Buffalo B414 and Buffalo B304 being fitted with the equipment.

Last year, TFG Marine announced it reached a key milestone in its global digitalisation programme with the installation of an ISO 22192-compliant MFM on the Buffalo 404, a barge on time charter from American bunker barge company Buffalo Marine Service Inc.

The installation was part of TFG Marine’s wider strategy to equip close to 90% of its global bunkering fleet with MFMs by 2026 as a commitment towards improving data integrity, streamlining operations and strengthening trust in marine fuel transactions.

Photo credit: TFG Marine
Published: 25 September, 2026