Shell ships fuel oil from Singapore to UAE

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Reuters reported that Royal Dutch Shell Plc is moving about 1 million barrels of fuel oil into the UAE's refueling port of Fujairah in a rare arbitrage play

Fuel oil traders said that the time chartered vessel is expected to arrive at the world's third largest bunkering port sometime in early July. The vessel is on its way and is scheduled to arrive in Fujairah next week. Lower exports from Iran and Iraq has tightened supply at the port, boosting prices.

Fujairah typically receives 200,000 tonnes to 300,000 tonnes of the 380 centistoke grade shipping fuel from Iran. But as the summer approaches Iran has capped international sales to feed domestic demand for the fuel which can also be used for power generation. Bunker premiums at Fujairah have more than doubled since the end of May because of tightening supply.