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Sources say that Fujairah's marine fuel prices are near their highest levels in a year, due to the suspension of Sudan supply.

Trade sources reported that spot premiums for marine oil at Fujairah - the third largest bunkering port in the world - held near to their highest levels during this year as the fuel oil supply was tightened following the United Arab Emirates' decision to stop importing Sudanese crude oil.

According to Kpler ship tracking data, the UAE imported no Sudanese crude oil in August, despite receiving one or two cargoes per month of Nile Blend or Dar Blend crude this year.

The reason for the imports being stopped was not immediately apparent.

Sudanese crude oil is usually refined in Fujairah into very low-sulfur fuel oil (VLSFO).

The UAE sources said this week that bunker premiums for VLSFO delivered at Fujairah to ships were offered for delivery five days before the date of the agreement at $15 per metric ton over Singapore benchmark fuel oil quotes. Offers for later deliveries ranged from $10 to $13 per ton.

Sources said that premiums rose last week, reaching their highest levels for the year to date, after largely hovering around parity or low single digits in earlier months of this year.

One of Dubai's marine fuel traders said that the supply of VLSFO cargo is now tighter, and loading has been delayed.

A second trader stated that the price hike is temporary and fuel is still available two weeks in advance.

Roslan Khasawneh is a senior research analyst at Kpler and a lead researcher for fuel oil. He said that it will take some time before refineries in Fujairah can get alternative crude supplies such as Doba oil from Chad or Escalante oil, which comes from Argentina.

(source: Reuters)