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Middle East fuel oil exports poised to reach a four‑month high, tightening global bunker supply

Executive summary: Middle East fuel oil exports are forecast to rise to a four‑month high this month as tanker traffic through the Strait of Hormuz picks up and Iraq, Saudi Arabia and Oman increase shipments from ports outside the Persian Gulf. The added supply tightens the global bunker fuel market, influencing fuel oil prices, shipping costs and the revenues of Middle Eastern exporters.

Who is involved: Key fuel oil producers Iraq, Saudi Arabia, Oman; shipping operators using the Strait of Hormuz; global bunker fuel consumers and refineries.

Likely next: Exporters are likely to maintain higher shipments if demand stays strong, while market participants will watch for any geopolitical disruptions that could curb traffic through the strait.

The rebound in fuel oil shipments from Iraq, Saudi Arabia and Oman, driven by renewed tanker traffic through the Strait of Hormuz, signals a tightening of supply in the bunker fuel market. While the increase supports exporter revenues, it may exert upward pressure on fuel oil prices and affect shipping cost calculations. The development fits within a broader pattern of Middle Eastern output adjustments responding to shifting global demand and geopolitical stability.

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