Due to the war in the Middle East, the price of marine fuel has risen to record levels: there is a risk of shortage

Global shipping may face a fuel shortage due to the war in the Middle East.

This is reported by UkrAgroConsult with reference to Bloomberg.

Thus, due to the war in the Middle East, the price of fuel oil, the fuel used by most of the world’s fleet, has risen sharply.

Oil prices remain relatively stable (about $100/barrel), but the situation in the fuel oil market has worsened. In key bunker ports, prices have risen to record levels: in Singapore, fuel oil is traded at about $140/barrel, and in Fujairah – almost $160 – this significantly exceeds the peak values ​​​​of 2008 and 2022.

Shipping companies warn of the risk of a physical shortage of fuel. The CEO of AP Moller – Maersk said that some ports in Asia may be left without fuel oil stocks if the situation does not change. The most tense situation is observed in the two largest bunkering centers of ships – Singapore and Fujairah.

The main reason for the crisis is the virtual closure of the Strait of Hormuz, through which a significant part of the world’s fuel oil exports from Saudi Arabian refineries pass. According to estimates by the International Energy Agency, these enterprises produce about 20% of the world’s fuel oil sold on the international market.

Currently, traders are already redirecting fuel shipments from Europe and America to Asia to alleviate the shortage. But if the blockade of the Strait of Hormuz is prolonged, the risk of stopping part of the world’s fleet will increase, which will ultimately affect global supply chains and trade.

Earlier, USM reported that on Monday, March 16, Iran again attacked the port of Fujairah (UAE), where the country’s key oil hub is located.