Ukraine And Middle East Conflicts Threaten Fuel Oil Supplies
A global fuel oil shortage is expected in the third quarter of this year due to the conflicts in Ukraine and the Middle East.
Analysts surveyed by Reuters forecast that developments in both regions will contribute to tightening global fuel oil supplies.
According to the information, disruptions facing producers are expected to lead to fuel shortages for ships and power plants.
Strikes on oil refineries in Russia and the Persian Gulf have disrupted production, while maritime trade has also become more difficult.
The decline in supplies threatens to further increase costs for shipowners and electricity producers, who are already facing operational disruptions. Asia is expected to be hit the hardest, as the region is more dependent on imports from Persian Gulf countries, where supply disruptions have emerged.
Singapore, the world's largest bunkering hub, imports more than half of the roughly 1 million barrels of fuel oil it needs each day, according to Kpler.
Energy Aspects expects the global fuel oil market to face a shortfall of around 218,000 barrels per day in the third quarter.
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