UAE sees dip in oil-related sales, signaling strains in supply chains

By Al Mayadeen English
Source: Agencies
16 Oct 2025 11:04
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Fujairah’s bunker fuel sales slump in September, a red flag for the UAE’s energy logistics amid tightening supply and stockpiles.

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An oil tanker approaches the new Jetty during the launch of a $650 million oil facility in Fujairah, United Arab Emirates, September 21, 2016. (AP)

Recent data from the UAE’s Fujairah port reveals a notable decline in marine bunker fuel sales, underscoring emerging stress points in oil and energy logistics amid shifting global flows and strained supply sources.

According to Fujairah Oil Industry Zone (FOIZ) statistics, sales of marine fuel in September fell to 639,001 cubic meters, down about 1.8% from August and marking a three-month low. The drop was driven largely by a sharp contraction in sales of low-sulfur marine fuel, which slid 11.4% month-on-month. Meanwhile, high-sulfur fuel volumes surged by 21.7%, briefly offsetting some of the decline.

Earlier in 2025, the trend had already started. In the first half of the year, Fujairah bunker sales dropped by 5% year-on-year, amounting to 3.7 million cubic meters compared to 3.9 million in H1 2024.

Additionally, oil product inventories at Fujairah fell to their lowest levels in years — total stockpiles dropped 11% week-on-week around late September, reaching their deepest declines in over a decade. Heavy fuel oil and light distillates led the downward slide.

Supply disruptions, logistical chokepoints

Sector analysts attribute the downturn to several converging factors:

Supply squeeze of blending crudes: The UAE had sourced portions of low-sulfur fuel from Sudanese crude, shipments of which have now stopped amid the UAE's backing of the RSF in Sudan. The absence of these inputs has tightened downstream capacity for producing compliant marine fuel.
High demand for residual types: The rise in high-sulfur fuel sales may reflect cargo substitution from constrained low-sulfur grades, as ship operators navigate sulfur regulator costs versus availability.
Record low inventories strain buffer: With product stockpiles plunging, port capacity to absorb shocks is diminished, making the system more vulnerable to external disruption.

UAE oil resilience, diversification, and export dynamics

While these developments reflect softness in a key segment of the oil value chain, they do not yet conclusively point to a collapse in crude exports from the UAE. In fact, recent forecasts suggest the UAE may lead growth among Gulf economies in 2025, driven in part by increased oil output under relaxed OPEC+ quotas. Still, the decline in bunker fuel sales and compressed inventories highlight stress points in refining, logistics, and strategic reserves, areas often overlooked when focusing solely on crude volume figures.

Reduced bunker demand often precedes broader declines in shipping flows, demand for refined products, or shifts in routing, all of which could negatively impact margins for Gulf producers.