Fujairah (a rocky ribbon of land between the Hajar Mountains and the Indian Ocean coast of the United Arab Emirates) plans to improve its influence as an oil-trading hub. It plans on doing this by adding a crude-shipment jetty as well as expanded storage facilities.
“The emirate unloaded its first full crude cargo of about 2 million barrels at the jetty Tuesday after opening the dock for testing early last month,” Mousa Murad (the port’s general manager” said by phone. “The jetty connects by pipeline to tanks leased by Royal Dutch Shell Plc at a local storage terminal” he added.
Oil output is expanded by producers in the Middle East and the Organisation of Petroleum Exporting Countries is currently fighting for market share amongst a global supply glut.
“Adding crude storage and oil-loading capacity creates potential for greater volumes of business and gives traders more options,” Edward Bell (a commodities analyst at Dubai-based lender Emirates NBD) said in an interview Tuesday. “If tank space is readily available and there’s transparent data on inventory levels, that could have an influence on market prices for oil and products coming out of the region.”