UAE's Fujairah port sees bunkering slowdown after fire

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UAE’s Fujairah port sees bunkering slowdown after fire

March 4, 2026

DUBAI,— The fire at Fujairah port in the United Arab Emirates on Tuesday has slowed ship refueling at one of the region’s main bunkering centers, industry sources told Reuters.

Some fuel deliveries and tank loadings have been temporarily put on hold as traders, suppliers, and shippers wait for more details, though limited refueling is still taking place.

Statements from oil storage companies VTTI and Vopak confirmed that operations at the Fujairah terminal were suspended temporarily following the fire.

The interruption comes amid U.S.-Iran tensions that had already affected fuel shipments in the area and caused prices at Fujairah to rise on Monday.

Analysts and traders said this situation could shift demand to other ports, including Singapore.

Movement through the Strait of Hormuz, the critical waterway between Iran and Oman, has slowed dramatically after several vessels in the area were impacted.

The strait handles roughly 20% of global oil and significant liquefied natural gas shipments.

Although some bunkering continues, sales at Fujairah were largely paused, Dubai-based market sources said, noting that concerns over extended supply disruptions pushed marine fuel prices higher on Monday.

Low-sulphur fuel oil at the port increased to more than $30 per metric ton above Singapore fuel oil quotes, compared with $10–$15 last week, while high-sulphur fuel shifted from a discount to a premium. Fujairah is located on the UAE’s east coast near the entrance to the Strait of Hormuz.

Traders expect the slowdown in Fujairah to increase demand at other key bunkering hubs in Asia, Rotterdam, the Mediterranean, Colombo, and India if ships avoid the Middle East or remain stuck in the Gulf.

Spot demand at Singapore, the world’s largest bunkering port, was already strong late Monday as shipowners sought to secure fuel ahead of further price hikes, sources said.

One industry participant, speaking anonymously, said, “If the conflict continues, demand will rise in the coming weeks, and fuel premiums will increase due to the disruption in supply.”

High-sulphur fuel oil prices and profit margins in Asia rose sharply on Monday following a jump in Brent crude futures.

Royston Huan, senior oil products analyst at consultancy Energy Aspects, said that caution from shippers has effectively blocked transit volumes through the Strait of Hormuz, and prolonged disruptions could limit bunker fuel availability in Singapore.

(With files from Reuters)