New production for VLSFO out of India and Kuwait has alleviated concerns about failing supplies of blended fuel at the United Arab Emirates (UAE) port of Fujairah according to local reports.
According local reports Fujairah’s two refineries, German firm Uniper and trading company Vitol, met local demand in the main. While “Uniper’s regular exports of low-sulphur fuel oil to Singapore could be reduced if a change in tax regulations enables Chinese producers to feed demand there.”
With the Indian and Kuwaiti VLSFO offering coming on line and demand generally falling, mainly as a result of the extended Lunar New Year break as a consequence of the COVID-19 virus the price of VLSFO has fallen steadily, with the spread, the cost of blended fuel compared to HFO, well below US$200 in most regions.
