Bunker Holding expects marine fuel sales to dip in 2026 as war fragments market
By Jeslyn Lerh SINGAPORE, Oct 15 (Reuters) — Bunker Holding, the world's largest marine fuel seller by volume, expects a slight decline in global sales this year, Chief Operating Officer Mikkel Kannegaard said on Thursday. Reduced traffic out of the Middle East and a more fragmented market weighed on demand since the US-Iran war, he said. The group's total sales for 2026 are expected to fall slightly below 2025's volume at just under 24 million metric tons, he told Reuters on the sidelines of the Singapore International Bunkering Conference 2026. Bunker Holding owns several major marine fuel companies including Dan-Bunkering, Bunker One, Glander International, KPI OceanConnect and Unicore. Changes in global trade flows due to blockades at key waterways in the Middle East and a drop in fuel oil exports from the region have tightened supplies and kept bunker prices elevated. "You have obviously had a lot less traffic out of the Arab Gulf, which has slowed demand," said Kannegaard. "We have also seen rerouting through Suez also decreasing, and we have also seen a little bit of slow steaming from some of our customers as well." Kannegaard said there was a period when shippers bought on
By Jeslyn Lerh SINGAPORE, Oct 15 (Reuters) — Bunker Holding, the world's largest marine fuel seller by volume, expects a slight decline in global sales this year, Chief Operating Officer Mikkel Kannegaard said on Thursday. Reduced traffic out of the Middle East and a more fragmented market weighed on demand since the US-Iran war, he said. The group's total sales for 2026 are expected to fall slightly below 2025's volume at just under 24 million metric tons, he told Reuters on the sidelines of the Singapore International Bunkering Conference 2026.
Bunker Holding owns several major marine fuel companies including Dan-Bunkering, Bunker One, Glander International, KPI OceanConnect and Unicore. Changes in global trade flows due to blockades at key waterways in the Middle East and a drop in fuel oil exports from the region have tightened supplies and kept bunker prices elevated. "You have obviously had a lot less traffic out of the Arab Gulf, which has slowed demand," said Kannegaard. " Kannegaard said there was a period when shippers bought only what they needed because of high prices, and that distillate supplies had been tight in parts of Asia while fuel oil availability was more stable.
"The first wave we saw was that a lot of the demand moved to Asia... South Asia, particularly India, is also becoming a bigger bunker hub for us," said Kannegaard. He also noted stronger sales in Africa after more vessels rerouted around the Cape of Good Hope to avoid the Red Sea. "We are quite happy with our business in Africa, and we are seeing decent and continuous demand," said Kannegaard, adding that the reroutings created more opportunities in South and West Africa.
However, it was uncertain if this demand will persist as the Suez Canal reopens to more traffic, he said. "Africa is never going to be the cheapest place to bunker. " Still, he expects the region's bunker demand to grow over the next decade as investments and businesses grow. com;)