Ship fuel sales at the Port of Fujairah, the world’s third largest bunkering hub, probably set a new high for 2021 in October as buyers which had waited for crude oil prices to fall were forced to meet their requirements, sending premiums to a seven-month high, traders told S&P Global Platts.

The record so far for 2021 is August, when bunker sales hit 707,563 cu m, according to Fujairah Oil Industry Zone data. They dropped 9.5% on the month in September to 640,321 cu m as buyers put off purchases because of high crude oil prices. Demand was particularly strong for LSFO, with volumes seen up 5-10% on the month in October, traders said. Platts compiles the bunker data from the port around the 20th of every month.

“In September, most buyers were waiting along the sidelines for crude markers to soften. In absence of such signals, buyers gradually accepted that bunker prices would only increase as time goes by, while bunker requirements also pushed shipowners to make prompt inquiries in October,” a Fujairah bunker supplier said.

Platts data showed that the benchmark FOB Singapore Marine Fuel 0.5%S cargo assessments averaged $541.54/mt in September, up $31.14/mt from the August average. The average for October was $593.19/mt.

Bunker demand at the port is holding up this month, with bunker fixtures for the first-half at “very healthy levels,’” a trader said. “There is still much uncertainty for second half of the month,” a Fujairah bunker supplier said.

According to Platts data, the premiums of Fujairah-delivered marine fuel 0.5%S over the FOB Singapore Marine Fuel 0.5%S cargo assessments averaged $10.63/mt in October, well above September’s average of $2.10/mt.

“The good demand was quite unprecedented after a lackluster September, so barging capacities at Fujairah was stretched quite thin that helped premiums spike sharply,” a trader said.

Premiums of Fujairah-delivered marine fuel 0.5%S over FOB Singapore Marine Fuel 0.5%S cargo assessments surged to $22.72/mt on Oct. 27, the highest since March 24, Platts data showed. The premium was $20.63/mt on Nov. 1, the data also showed.