Emirates National Oil Company (ENOC) has reportedly chartered at least one vessel to store jet fuel as a measure to ensure supply to airlines in Dubai ahead of the US sanctions on Iranian energy trade, set to take full effect on November 4, which disrupt access to feedstocks used in the production of aviation fuel, several industry sources told Reuters.

ENOC has chartered the Suezmax-sized tankers Portman Square and NS Africa for between 30 and 60 days with an option to store oil products, two shipbrokers told Reuters.

ENOC’s move is unusual as the price for storage of the fuel is more than the price differential between the later-dated commodity and the prompt price, putting both the current and forwards jet fuel price swaps in what is known as a ‘narrow contango’, three of the sources said.

Jet fuel has been traded low in the Middle East recently due to high refining run rates and weak demand from Europe, meaning ENOC’s increased demand for fuel to boost the differentials, according to one of the sources.