Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

HSFO and VLSFO availability tight in Singapore; South China ports brace for typhoon Doksuri; LSMGO availability good across Oman.

Published

1 year ago

July 26, 2023

Admin

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:

25 July 2023

HSFO and VLSFO availability tight in Singapore
South China ports brace for typhoon Doksuri
LSMGO availability good across Oman

Singapore

HSFO availability has been tight in Singapore amid strong demand for the grade and some suppliers running low on stocks, a source says. Some suppliers are recommending lead times of almost two weeks for HSFO – virtually unchanged from last week.

Meanwhile, the VLSFO market also remains under pressure due to sluggish bunker demand amid increasing supply. More VLSFO has been imported by suppliers and bunker traders in Singapore, with imports increasing by 43,000 b/d from June to 504,000 b/d in July, according to cargo tracker Vortexa.

Despite ample supply of VLSFO, prompt availability remains under pressure and lead times of 9-12 are still recommended for bunker deliveries in the East Asian bunker hub – slightly up from last week.

LSMGO is more readily available, with relatively shorter lead times of 5-8 days.

East Asia and Oceania

Weak demand coupled with recent weather-related disruptions has ensured steady supply for all grades in Zhoushan. But bunker deliveries are still subject to weather conditions, a source says.

Bunker deliveries have been suspended by bad weather since Friday in Zhoushan’s OPL area, a source says. Bunkering at Zhoushan's slightly more sheltered Xiushandong anchorage could be suspended on Wednesday if bad weather persists, the source adds.

Adverse weather conditions are forecast to persist for the remaining days of this month, which could keep bunkering halted. The source asserts that it is “hard to tell” when bunkering will fully resume in the Chinese bunkering hub.

China Meteorological Administration has issued an alert for upcoming typhoon Doksuri, which is predicted to make landfall between the Chinese provinces of Fujian and Guangdong provinces on Friday. This might disrupt port operations in the southern part of China.

All bunker fuel grades remain in ample supply in Hong Kong, with unchanged lead times of around seven days.

Meanwhile, the availability of all grades has tightened in South Korean ports. Some suppliers, who were offering all bunker fuel grades at lead times of around 2-6 days, are now offering the grades at longer lead times of 5-8 days.

Bad weather conditions are forecast in the South Korean ports of Ulsan, Onsan and Busan between 26-30 July, in Daesan and Taean between 29-30 July, and in Yeosu between 28-30 July, all of which might disrupt bunker operations.

Adverse weather conditions are also predicted intermittently in the Philippine port of Subic Bay between 25 July and 1 August, the Thai ports of Koh Sichang and Leam Chabang between 27 July and 1 August, the Vietnamese port of Ho Chi Minh between 26 July and 1 August, and the Kiwi port of Tauranga between 25-27 July, which could disrupt bunkering.

Taiwanese and Philippine authorities have also raised typhoon alerts for Doksuri.

South Asia

VLSFO and LSMGO can be delivered with around 2-3 days of lead time in several Indian ports, including Kandla on the northwest coast and Cochin and Chennai on the southern coast.

A source says both grades remain relatively tight in Mumbai and Visakhapatnam and deliveries are subject to availability. Meanwhile, supply is subject to enquiry in Tuticorin port located on the southeast coast and Haldia on the east coast as it has been in recent weeks. A supplier in Paradip on the eastern coast of India is almost out of stock for both grades.

Rough weather is forecast to hit the Indian ports of Kandla, Sikka and Visakhapatnam between 28-29 July, 26-27 July and 26-27 July, respectively, which may hamper bunker deliveries.

Middle East

Prompt availability of VLSFO remains under pressure in Fujairah, with one supplier recommending lead times of 5-8 days – virtually unchanged from last week. Lead times for LSMGO and HSFO have also remained unchanged at 5-7 days in Fujairah. But some suppliers can offer all grades at prompt dates, these deliveries are subject to stem size, a source says.

Suppliers can offer LSMGO in the Omani ports of Muscat, Duqm, Salalah and Sohar, with prompt deliveries in 1-2 days possible.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 26 July, 2023

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