UAE's Fujairah port set for robust growth as Russian oil trade reshuffles
Oil storage demand and transit volumes are poised to grow further at the United Arab Emirates' Fujairah port this year as Russian trade flows continue to flood the hub, while latest price caps on Russian petroleum products have a mild impact on trade, industry executives said on Tuesday.
Fujairah had a record year in terms of oil cargoes in 2022, with close to 12,500 vessels calling at its offshore anchorage area, statistics show.
Amid the reshuffling of trade flows, volumes at the port were up about 10% last year, said Martijn Heijboer, business development manager at the port of Fujairah.
"There is still some uncertainty this year as the price cap (on Russian oil) just started in February," said Heijboer, adding that there is room for transit volumes and storage demand to grow because of new projects.
Fujairah will be commissioning a dry bulk export facility in Dibba, adding about 18 million tonnes of aggregate handling capacity.
Landed stocks at Fujairah averaged at 11.47 million barrels (1.81 million tonnes) per week in 2022, climbing from 10.26 million barrels (1.62 million tonnes) in 2021, based on data from the Fujairah Oil Industry Zone. More recently, storage volumes jumped sharply after February sanctions on Russian oil products and Kuwait's Al Zour refinery ramped up exports.
Russia has been selling crude and refined products at discounted prices after international sanctions while the UAE has been taking more cargoes of Russian crude oil, according to ship-tracking data and sources.
Russian fuel oil has also flooded Middle East markets since last year, with little signs of abating despite latest price caps on Russian oil products.
"I don't think the price cap really makes much of a difference... most of the Russian oil has been priced below the price cap anyway," Saudi Industrial Export Company's chief commercial officer Andrew Laven told the forum,
The price caps on petroleum products, which kicked in on Feb. 5, could instead have some impact on refining margins, said Laven.
Meanwhile, Vitol Bahrain's regional head of fuel Paul Kelly said that the price caps are there to "maintain the flow of oil" and "not to stop the flow".
Amid the reshuffling of trade flows, volumes at the port were up about 10% last year, said Martijn Heijboer, business development manager at the port of Fujairah.
"There is still some uncertainty this year as the price cap (on Russian oil) just started in February," said Heijboer, adding that there is room for transit volumes and storage demand to grow because of new projects.
Fujairah will be commissioning a dry bulk export facility in Dibba, adding about 18 million tonnes of aggregate handling capacity.
Landed stocks at Fujairah averaged at 11.47 million barrels (1.81 million tonnes) per week in 2022, climbing from 10.26 million barrels (1.62 million tonnes) in 2021, based on data from the Fujairah Oil Industry Zone. More recently, storage volumes jumped sharply after February sanctions on Russian oil products and Kuwait's Al Zour refinery ramped up exports.
Russia has been selling crude and refined products at discounted prices after international sanctions while the UAE has been taking more cargoes of Russian crude oil, according to ship-tracking data and sources.
Russian fuel oil has also flooded Middle East markets since last year, with little signs of abating despite latest price caps on Russian oil products.
"I don't think the price cap really makes much of a difference... most of the Russian oil has been priced below the price cap anyway," Saudi Industrial Export Company's chief commercial officer Andrew Laven told the forum,
The price caps on petroleum products, which kicked in on Feb. 5, could instead have some impact on refining margins, said Laven.
Meanwhile, Vitol Bahrain's regional head of fuel Paul Kelly said that the price caps are there to "maintain the flow of oil" and "not to stop the flow".