Fujairah VLSFO stays scarce as Hi5 premium widens

Fujairah bunker buyers still face a very tight market for VLSFO. Fresh fuel oil arrivals this month have lifted port stocks from recent lows, but most of those cargoes have been high-sulphur grades. The first low-sulphur fuel oil parcels since February have not eased prompt VLSFO availability, which market contacts still call extremely constrained. Nearby Khor Fakkan is under similar pressure as Gulf shipping remains disrupted.

ENGINE data shows the Hi5 premium in Fujairah - the gap between VLSFO and HSFO - has widened through September. It now sits well above the same spreads in Singapore and Zhoushan. That matters for voyage planning. Scrubber-fitted ships can widen the cost gap by burning HSFO. Conventional buyers needing VLSFO should not assume a quick stem at the UAE hub.

Singapore remains tight on VLSFO as well, with recommended lead times still in the mid-teens of days. Regional conflict is also slowing inbound cargoes into the hub. HSFO notice there has eased a little, but low stocks at many desks keep the market firm. Buyers heading for Fujairah, Khor Fakkan or Singapore should lock stems early and keep port optionality open.