Fujairah marine fuel premiums hold near year-highs on Sudan supply halt

Spot premiums for marine fuel at Fujairah, the world's third-largest bunkering port, held near their highest levels this year, as fuel oil supply tightened after the United Arab Emirates stopped imports of Sudanese oil, trade sources said.

The UAE did not import any Sudanese crude in August, according to ship-tracking data on Kpler, despite having received one or two cargoes of Nile or Dar Blend crude per month this year.

It was not immediately clear why imports were halted.

The Sudanese crude is typically processed at refineries in Fujairah to produce very low sulphur fuel oil (VLSFO).

Bunker premiums for VLSFO delivered to ships at Fujairah were offered at about $15 a metric ton above Singapore fuel oil benchmark quotes, for deliveries five days forward from the deal date, while offers for later delivery ranged between $10 and $13 a ton, the UAE-based sources told Reuters this week.

Premiums edged higher last week to touch their year-to-date highs, after mostly hovering at parity to low-single digits earlier this year, the sources added.

"VLSFO cargo (supply) is tighter and there are some loading delays for now," said one of the Dubai-based marine fuel traders.

Another trader said the price increase is likely to be temporary, adding that there is some tightness in prompt supply but fuel is available for delivery two weeks forward.

Roslan Khasawneh, senior lead research analyst for fuel oil at Kpler, said it will take time for refineries in Fujairah to get alternative crude supply such as Doba crude from Chad, Escalante oil from Argentina, and Angola's Dalia crude.

(Reporting by Jeslyn Lerh; Editing by Florence Tan and Sherry Jacob-Phillips)