Key UAE Port Suspends Oil Loadings After Drone Attack, Fire

Article content(Bloomberg) — The United Arab Emirates suspended loading operations at a key oil-trading hub after a drone strike and fire on Saturday, demonstrating the vulnerability of the country’s only export route while the Strait of Hormuz is blocked.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe blaze has since been extinguished, which could potentially allow for loadings to resume, a person with knowledge of the matter said. There were no tankers at any of the port’s oil loading points on Saturday evening, tanker tracking data show.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentExports of crude and fuels at the port of Fujairah, which lies outside the Persian Gulf, were halted earlier as a precautionary step while damage from the incident is assessed, people familiar with the matter said, asking not to be identified as they’re not authorized to speak to the media. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentFujairah is at the end of a pipeline that allows the UAE to bypass Hormuz, the world’s most-important oil channel. A drone was intercepted there earlier on Saturday and damage from the falling debris caused a fire, Fujairah’s media office said in a statement. There were no reported injuries. Article contentWhile oil prices have surged above $100 a barrel since the conflict began, the bypass — alongside a much bigger one in Saudi Arabia — has provided one way for the region’s supply to get to the global market.

Most Middle East oil exports, including the lion’s share of the UAE’s, have to leave the Persian Gulf on tankers through Hormuz.Article contentThe damage at Fujairah came not long after the US struck military targets at Kharg Island, Iran’s main export facility, prompting a warning from Tehran that it would retaliate against regional energy infrastructure.Article contentArticle contentAbu Dhabi National Oil Co. declined to comment. The port authority didn’t respond to a request to do so.Article contentNestled along the UAE’s eastern coast between the Gulf of Oman and the Hajar Mountains, Fujairah, has developed as an critical trading hub for crude and refined products over the past few decades. It’s connected by pipeline to Abu Dhabi’s main onshore oilfields and is the main load point for the country’s flagship Murban crude grade. Article contentAdnoc, which operates an export facility including storage and loading points at Fujairah, cut the volume it will provide to equity partners in its Murban fields from the facility for March.Article contentThe port’s tank farms have capacity to hold more than 70 million barrels of fuels like gasoline, diesel and ship fuel. Article contentTraders buying and selling refined products throughout the region use the port’s tanks as a depot giving them quick access to supplies to meet customer demand. Cargo ships and tankers sailing the region stop in Fujairah for fuel, supplies and crew changes.Article content—With assistance from Yongchang Chin.Article content(Updates with fire having been extinguished in second paragraph.)Article contentTrending Bank of Canada more likely to cut than hike after 'brutal' jobs report, say economists Economy Garry Marr: The pros and cons of doling out inheritance with a warm hand Family Finance This TSX stock has 30% upside on the company's $11 billion project backlog, analyst says Investor Canadians’ average wealth hit $1.07 million, but what’s driving net worth depends on your age, province and bracket Wealth Posthaste: Oil supply shock could force the Bank of Canada's hand yet News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Bank of Canada more likely to cut than hike after 'brutal' jobs report, say economists Economy Garry Marr: The pros and cons of doling out inheritance with a warm hand Family Finance This TSX stock has 30% upside on the company's $11 billion project backlog, analyst says Investor Canadians’ average wealth hit $1.07 million, but what’s driving net worth depends on your age, province and bracket Wealth Posthaste: Oil supply shock could force the Bank of Canada's hand yet News