London, Sept. 7 (SANA) A shortage of fuel oil used by ships and power plants is expected in the third quarter as wars disrupt refinery operations and tanker traffic, prompting refiners to prioritize diesel, gasoline and jet fuel production, Reuters reported.
Energy Aspects forecasts a global fuel oil deficit of 218,000 barrels per day during the quarter, while Rystad Energy expects supplies to remain critically tight because of prolonged disruptions in the Middle East.
Fuel oil inventories are about 30% below three-year seasonal averages at major hubs including Singapore, Amsterdam-Rotterdam-Antwerp and Fujairah.
In Singapore, the price of very low sulphur fuel oil has risen 76% since the start of the Iran war to nearly $825 per metric ton as of September 1, according to ZeroNorth.
Kpler data showed Middle East fuel oil exports fell 45% year on year to an average of 447,000 barrels per day between March and August, while Russian exports dropped to a record low of 591,000 barrels per day in August following Ukrainian attacks on refineries.
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