UAE halts imports of Sudanese Oil

 The marine fuel market at the Port of Fujairah has witnessed a significant increase in spot premiums, due to reduced supplies resulting from the halt in Sudanese crude oil imports to the UAE, according to trade sources familiar with the market.

According to Kpler shipment tracking data, the United Arab Emirates recorded no imports of Sudanese crude oil during the month of August, despite the regular arrival of one or two monthly shipments of Nile or Dar Blend crude since the beginning of this year. The reasons for halting the aforementioned imports, which were processed in Fujairah Oil Refineries to produce ultra-low-sulfur fuel oil (ULSFO), a product widely used in ship bunkering, are not yet known.

The sources confirmed that the premiums for (ULSFO), intended for spot delivery in Fujairah, reached approximately ($15 per ton) above the benchmark prices set in Singapore five days ago, while offers for later delivery ranged between ($10 and $13 per ton), reflecting the continued pressure on the local market due to the supply shortage.

The same sources indicated that cargo insurance premiums rose last week, reaching their highest levels since the beginning of the year, after a long period of stability at low or even levels, which -naturally- highlights growing concerns in relation to market volatility and logistical challenges.

The Port of Fujairah is the third largest global bunkering hub after Singapore and Rotterdam, it plays a pivotal role in maritime energy trade, as international shipping companies rely on it as a major hub for their fuel needs.

The halt in the flow of Sudanese crude oil to the UAE, following an Emirati decision, comes at a time when Sudan has been experiencing ongoing unrest following the outbreak of armed conflict between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) in (April of 2023). Unfortunately, this has directly impacted the country’s oil exports and affected the stability of energy supplies in the region.