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Bunker Fuel Availability

ENGINE: East of Suez Bunker Fuel Availability Outlook

Bunker demand improving in Singapore; availability good in Zhoushan; prompt availability tight in Fujairah.

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RESIZED ENGINE East of Suez

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:

  • Bunker demand improving in Singapore
  • Availability good in Zhoushan
  • Prompt availability tight in Fujairah

Singapore

Bunker demand in Singapore has shown signs of improvement so far this week, a source says. Prompt availability of both VLSFO and HSFO remains tight in Singapore, with most suppliers recommending unchanged lead times of 8-11 days and 7-9 days.

LSMGO remains more readily available in the port, with short lead times of 2-4 days.

Several suppliers in Singapore are actively competing with each other by offering bunker grades at competitive prices, the source adds.

Singapore’s residual fuel oil stocks have averaged 8% lower so far in September compared to August, according to Enterprise Singapore. The port’s net fuel oil imports have fallen by 6% so far this month. Both fuel oil imports and exports have declined this month. Singapore’s fuel oil imports have dropped 5% so far this month, while its exports have dipped 1%.

On the other hand, Singapore’s middle distillate stocks have averaged 14% higher so far in September than across August.

East Asia and Oceania

Improved barge availability and low bunker demand have contributed to boost prompt availability for all grades in Zhoushan, a source says. Some suppliers, that were offering all grades at lead times of 4-7 days at the end of last week, are now advising shorter lead times of 3-5 days

Bunker demand in Hong Kong has been sluggish as the bunker prices at the port have been higher compared to Singapore. As a result, vessels there are opting to make bunker calls in Singapore instead, a source says. Most suppliers are advising lead time of 5-7 days – virtually unchanged from last week.

Meanwhile, recommended lead times vary widely between 3-14 days for all grades in South Korean ports. Some suppliers were offering all grades at lead times of 7-13 days last week. Bunker demand is “not too bad” in South Korean ports, a source says.

Rough weather conditions are forecast in the South Korean ports of Ulsan, Onsan, Busan and Yeosu between 15-17 September, and in Daesan and Taean between 15-16 September, which might hamper bunker deliveries at these ports.

Adverse weather conditions are also predicted in the Vietnamese port of Ho Chi Minh between 15-16 September, and in the Kiwi port of Tauranga on 14-15 September and on 18 September, which may disrupt bunker operations.

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.

Both grades remain relatively tighter in Mumbai and Visakhapatnam, where deliveries are subject to availability. Meanwhile, supply of both grades remains 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 source says.

Middle East

In Fujairah, prompt availability remains “super tight” for all bunker fuel grades amid good demand. Lead times for all grades remain unchanged at 5-7 days, but some suppliers can offer prompt supply depending on stem sizes, a source says.

Lead times of 5-7 days are also advised across all fuel grades in another UAE port of Khor Fakkan - unchanged over the last couple of weeks.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 13 September, 2023

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Alternative Fuels

ENGINE on Fuel Switch Snapshot: VLSFO holds firm

High demand and low stocks make VLSFO resilient to Brent; rising concerns of supply disruption drive LNG prices higher; bio-bunker premium over conventional VLSFO narrows further.

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ENGINE on Fuel Switch Snapshot: VLSFO holds firm

Once a week, bunker intelligence platform ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs. The following is the latest snapshot: 

  • High demand and low stocks make VLSFO resilient to Brent
  • Rising concerns of supply disruption drive LNG prices higher
  • Bio-bunker premium over conventional VLSFO narrows further

Rotterdam's price premium of LNG over HSFO has increased by $7/mt to $9/mt, after a modest rise in the price of LNG in the past week. HSFO remains the cheapest fuel alternative in Rotterdam.

When the estimated EU ETS cost is included in the bunker fuel costs for voyages between the EU and a non-EU port, Rotterdam LNG’s $4/mt discount to HSFO has flipped to a $4/mt premium in the past week. For a ship sailing from Rotterdam to another EU port with estimated EU ETS costs included, LNG now has only a $1/mt price advantage over its HSFO, compared to $9/mt the week prior.

LNG’s discount to B24-VLSFO in Rotterdam has narrowed even further by $18/mt in the past week, even when estimated EU ETS costs are added to the price. Rotterdam’s LNG is priced at $210-221/mt discount to its B24-VLSFO.

Rotterdam’s B24-VLSFO premium over pure VLSFO has dropped even further by $13-14/mt over the past week, to $87-109/mt.

VLSFO

Rotterdam’s VLSFO benchmark has inched lower by $1/mt in the past week, despite a $30/mt decline in front-month ICE Brent futures. When the price of Dec24 EU Allowances (EUAs) for voyages between two EU ports is added to the VLSFO price, the overall price decreases by $5/mt.

VLSFO demand in Rotterdam has remained steady in the past week, sources told ENGINE. Two traders have reported strong VLSFO demand in the port. Availability is mostly normal, but securing the grade for very prompt dates (0-2 days) can be difficult, the sources added.

The ARA region’s independently held fuel oil stocks have averaged 5% lower so far this month than across March, according to Insights Global data.

Steady demand in Rotterdam and a drop in the wider ARA region's fuel inventories seem to have supported the benchmark's resistance against Brent's downward pull.

Singapore’s VLSFO benchmark has seen a modest $3-5/mt decrease in the past week, depending on whether the price is adjusted with the estimated EUA price for a voyage to an EU port.

Demand for bigger VLSFO stems seems to have increased in Singapore. ENGINE recorded 15 VLSFO stems in Singapore in the wide price band of $634-653/mt. Three 1,500 mt stems were priced in the lower price band between $634-648/mt and seven 500-1,500 mt stems were priced between $643-649/mt.

Biofuels

Rotterdam’s B24-VLSFO HBE bunker price has moved $15-18/mt lower in the past week, to $719-790/mt, depending on whether the fuel is estimated to be consumed on a voyage to an EU port or not.

PRIMA-assessed palm oil mill effluent methyl ester (POMEME) in the ARA dropped by $72/mt on the week, which has put downward pressure on bio-bunker prices in Rotterdam. POMEME-based biofuels are eligible for Dutch advanced biofuel (HBE) rebates.

Singapore’s B24-VLSFO UCOME bunker price has inched only $2-3/mt lower to $761-796/mt.

Prompt bio-bunker availability is tight in Singapore, two sources say. This has partly prevented prices of the most sought-after biofuel blend, B24-VLSFO UCOME, from dropping steeply in the past week.

LNG

Rotterdam’s LNG bunker benchmark has remained roughly steady in the past week.

Concerns that European LNG supply could be disrupted if the Middle East conflict escalates further and the possibility of a Hormuz Strait blockade by Iran have kept the price afloat. The Strait of Hormuz plays a crucial role in LNG transportation. Qatar alone accounts for around 20% of global LNG trade passing through this choke point.

Singapore’s LNG bunker prices has seen a significant rise of $35-37/mt in the past week. This is because the NYMEX Japan/Korea contract rolled from May to a higher-priced June contract last week, which has raised the JKM benchmark.

By Konica Bhatt and Erik Hoffmann

 

Photo credit and source: ENGINE
Published: 23 April 2024

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Bunker Fuel

TFG Marine-chartered bunker barge “Margherita Cosulich” heads to Oman

Firm said it will be ready to serve shipping customers with VLSFO and LSGO bunker fuels in the Port of Duqm and SOHAR Port and Freezone over the coming weeks.

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TFG Marine-chartered bunker barge “Margherita Cosulich” heads to Oman

Global marine fuel supply and procurement firm TFG Marine on Friday (19 April) said a bunker barge, which it charters, was en route to its bunker fuel supply operation in Oman. 

“Our mass flow meter fitted, ISO-22192 compliant Margherita Cosulich supply barge, chartered by TFG Marine and operated by Fratelli Cosulich, is well en route to Oman,” it said in a social media post.

TFG Marine said it will be ready to serve shipping customers with VLSFO and LSGO in the Port of Duqm and SOHAR Port and Freezone over the coming weeks.

Manifold Times previously reported the bunker barge was used by Fratelli Cosulich Group in Singapore. Margherita Cosulich is a 2019-built 7,994 dwt bunkering vessel.

In February, SOHAR Port and Freezone and TFG Marine announced the signing of an MoU agreement to establish an international bunker fuel supply operation within the deep-sea port. 

The port is strategically located at the city of Sohar, Sultanate of Oman, close to the main shipping routes connecting the Gulf and the Indian subcontinent with the rest of the world.

Related: Fratelli Cosulich welcomes “Margherita Cosulich” to Singapore bunkering fleet
Related: TFG Marine to establish international bunker fuel supply op at SOHAR Port

 

Photo credit: TFG Marine
Published: 22 April 2024

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Bunker Fuel

Baltic Exchange: Bunker Report (18 April 2024)

EIA’s US crude oil stockpiles rose (+2.7mbbls) last week, structural problems remain in China despite some positive signals, and strong non-OPEC supply all played an influence in the declines.

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Baltic Exchange: Bunker Report (18 April 2024)

The following bunker report has been provided by freight market information provider Baltic Exchange for post on Singapore bunkering publication Manifold Times:

Commentary:

Yesterday we saw a large scale selloff of crude and products, with Brent and WTI falling over 3 percent respectively. The market cut its war risk premium yesterday but that wasn't all: EIA's US crude oil stockpiles rose (+2.7mbbls) last week, structural problems remain in China despite some positive signals, and strong non-OPEC supply all played an influence in the declines. Noteworthy, the IMF said yesterday, "The US and Chinese governments should take action to lower future borrowing, as a surge in debts threatens to have profound effects on the global economy". It will be interesting to see how the central banks react.

Note:

All values are in US$/metric ton, all-in (invoice price), delivered on board
Delivery in 7-10 days
ISO 8217:2010
IFO 380 3.5% Sulphur
IFO 380 0.5% Sulphur
DMA 0.1% Sulphur

Rotterdam – Waalhaven – Maasvlakte range
Houston – Houston Harbor
Singapore – Anchorage, under SBA Scheme
Fujairah – Offshore Anchorage Area

Submitted weekly at Close of Business on Thursdays

Panellists:
Island Oil Limited, Cockett Marine Oil Pte, Monjasa A/S, KPI OceanConnect

 

Photo credit and source: Baltic Exchange
Published: 19 April, 2024

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