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Asia fuel oil prices capped in early 2025 but supply risks loom

Oil
 

"We anticipate that Al Zour's LSFO exports to Fujairah will remain elevated next year, primarily driven by year-on-year growth in the UAE's (United Arab Emirates') bunker fuel demand," said Palash Jain, FGE's Middle East oil market consultant. 
He added that the UAE's domestic output is constrained due to ongoing challenges at the Montfort refinery.
Meanwhile, Iraq's fuel oil exports, which reached all-time highs in 2024, could climb further as it is expected to receive natural gas from Turkmenistan from the second quarter to replace oil at Iraqi power plants, said FGE's Jain.

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