ENGINE: East of Suez Bunker Fuel Availability Outlook

The following article regarding regional bunker fuel availability outlook for the East of Suez region has been provided by online marine fuels procurement platform ENGINE for publication on Singapore bunkering publication Manifold Times:

9 May 2023

• Prompt supply tight in Singapore and Fujairah
• VLSFO availability tight in Zhoushan
• Russia exports more fuel oil to Singapore and Fujairah

Singapore

HSFO and VLSFO availability is tight in Singapore. Recommended lead times for HSFO vary between 7-12 days, while VLSFO requires 9-12 days of lead time.

LSMGO is more readily available with lead times of 3-5 days.

Residual fuel oil stocks in Singapore averaged 3% higher in April than across March, data from Enterprise Singapore shows. In April, Russia replaced Brazil to become Singapore’s biggest fuel oil import source with 21% of the total, according to cargo tracker Vortexa.

East Asia

Securing VLSFO stems for prompt dates in Zhoushan can be difficult. The earliest date for the grade’s delivery there now stands on 15 May, a source says. HSFO and LSMGO supply requires lead times of 3-5 days.

Bunkering at Zhoushan’s outer port limit (OPL) area was put on hold between Monday and Tuesday due to rough weather conditions. Calmer weather conditions are forecast for the rest of the week.

A bunker barge that carries 0.50% MGO in Taiwan’s Kaohsiung is undergoing maintenance until 30 May. As a result, deliveries of 0.50% MGO stem sizes of over 300 mt could be delayed, a source says.

Prompt availability of all grades remains tight in South Korea’s Ulsan port. The earliest VLSFO delivery date with two suppliers is from 19 May onwards. Meanwhile, two suppliers can supply stems from 15 May, but these deliveries are subject to enquiry, a source says.

Strong wind gusts of up to 22 knots are forecast to hit Hong Kong on Wednesday and could hinder bunker deliveries.

LSMGO availability is normal in the Philippines’ Manila port, a trader says.

The Thai port of Koh Sichang is forecast to experience adverse weather on 13 May, and the Kiwi port of Tauranga between Tuesday and Thursday this week, which might hamper bunkering.

South Asia

VLSFO and LSMGO availability is normal in India’s Mumbai port.

Some Indian ports are already preparing for severe weather conditions during the monsoon season which typically starts in June. Kandla’s Deendayal Port Authority has asked all vessels to keep their engines always on standby considering the upcoming rough weather conditions, according to GAC Hot Port News.

Middle East

All grades remain tight for prompt dates in Fujairah. Lead times of 5-7 days are recommended for all grades in the UAE port. Smaller stem sizes can have longer lead times, a source says.

Fujairah’s fuel oil inventories averaged 7% lower in April than in March, data from Fujairah Oil Industry Zone (FOIZ) and S&P Global shows. Distillate stocks surged by 18% on the month.

Russia remained Fujairah’s biggest fuel oil import source in April – a position it has been holding since October. Almost 42% of Fujairah’s fuel oil imports came from Russia in April, followed by 32% from Iran and 14% from Kuwait.

Lead times of 4-5 days are advised for all grades in the UAE port of Khor Fakkan, but a few suppliers can perform prompt deliveries there. Bunker stems are mostly delivered by trucks in the port.

By Nithin Chandran

Photo credit and source: ENGINE
Published: 10 May, 2023