Oil loading operations in Fujairah partially halted after drone attack

Fujairah Port

UAE's ADNOC shut down its Ruwais refinery after a fire broke out at one of its facilities

Sources in the oil and trading sectors said that some oil loading operations were halted at the port of Fujairah, a major bunkering hub and key crude export terminal, following a drone attack and fire on Saturday.

The halt came hours after a US attack on military targets on Iran's Kharg Island, an oil export hub. Iran's Revolutionary Guard responded by saying that US interests in the UAE, including ports, docks, and military sites, are legitimate targets.

Fujairah, located outside the Strait of Hormuz, is the export gateway for about 1 million barrels per day of UAE Murban crude, equivalent to about 1% of global demand. Reuters was unable to determine the impact on loading operations.

Earlier this week, the International Energy Agency (IEA) stated that the world is facing the largest oil supply crisis in history after the Strait of Hormuz, a waterway along the Iranian coast, became virtually closed following the US and Israeli airstrikes on Iran on February 28. This has forced the UAE, among other oil-producing nations, to reduce its output.

The Fujairah government media office reported that a fire broke out after debris fell during the interception of a drone. No injuries were reported, and civil defense teams were working to contain the blaze. Authorities did not provide any information regarding the suspension of operations.

Bloomberg News had previously reported that some oil loading operations at the port of Fujairah were suspended following a drone attack and subsequent fire.

On Tuesday, a source familiar with the matter said that ADNOC had shut down its Ruwais refinery after a fire broke out at one of its facilities following a drone strike, marking another disruption to energy infrastructure caused by the US and Israeli actions against Iran.