Bunker Fuel Availability

ENGINE: East of Suez Bunker Fuel Availability Outlook

Fuel oils tight and stocks drawn in Singapore; Singapore biofuel bunker sales hit new milestone; strong demand and pressure on prompt in Fujairah.

Published

1 year ago

September 20, 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:

Fuel oils tight and stocks drawn in Singapore
Singapore biofuel bunker sales hit new milestone
Strong demand and pressure on prompt in Fujairah

Singapore

HSFO and VLSFO availability is very tight for prompt delivery dates in Singapore, as it was last week. Demand has been strong and lead times for the two grades are roughly the same as last week, at 6-10 days and 7-11 days, respectively. But conditions can quickly change, a trader says.

Buyers can expect to pay price premiums for VLSFO deliveries that are prompter than the recommended lead time, and VLSFO offers can vary greatly between suppliers.

A recent fuel oil stock draw has underpinned the pressure on VLSFO and HSFO. Stocks have been drawn this month during a period of declining net imports, and have come down from nearly 24 million bbls in April to just over 20 million bbls now. More exports to China, South Korea and Bangladesh in particular have weighed on stock levels.

LSMGO continues to be more readily available and can be delivered as soon as 2-5 days after enquiry. The port’s middle distillate stocks have swelled by 17% so far this month over August levels.

B24-VLSFO biofuel blends can be delivered with just over a week of lead time at a minimum with certain suppliers. But 30 days is generally the recommended lead time. Bio-blended VLSFO sales hit an all-time record of 52,500 mt in August, up from 39,000 mt in July.

No sales of bio-blended HSFO, MGO or ULSFO were recorded, and B24-VLSFO seems to be the standard grade and more recent trials and regular biofuel refuelling have supported the growth.

East Asia

Low bunker demand has kept tightness in check in Zhoushan, with most supplier advising unchanged lead times of 3-5 days for all grades. But bad weather is forecast in Zhoushan between 19-20 September, which may hamper bunker deliveries, a source adds.

VLSFO and LSMGO availability is good in north China’s Dalian. Nearby Tianjin has ample VLSFO availability, while LSMGO and HSFO grades can be tight and subject to enquiry.

VLSFO and LSMGO grades are tight for prompt dates in Shanghai, and HSFO is even less readily available.

In South China, Hong Kong has normal availability of all grades, but lead times of at least 5-7 days are recommended for good coverage from suppliers.

The southern South Korean ports of Busan, Ulsan, Onsan and Yeosu face potential bunker disruptions from strong winds and waves from Wednesday to Sunday. Bunkering could also be held back in the western ports of Daesan and Taean this week, with high waves forecast on Friday and winds on Saturday and Sunday.

LSMGO and HSFO availability is normal across South Korean ports. VLSFO is tight, especially in western ports where only two suppliers offer it.

South Asia

VLSFO and LSMGO continue to be in tight supply in Mumbai, Tuticorin, Haldia and Visakhapatnam, with delivery prospects subject to enquiry.

The grades are comparatively much more available in Kandla, Cochin and Chennai, where lead times of only 2-3 days are recommended.

Middle East

Robust demand has kept pressure on availability in Fujairah. Recommended lead times for all bunker grades are around the same as in recent weeks, at 5-7 days. Some suppliers can still deliver more prompt, but likely at price premiums.

The port’s heavy distillate and residual fuel oil stocks have been drawn below 9 million bbls this month. That is far below the 14 million bbls at the beginning of the year. Its middle distillate stocks have more than halved since the summer, from 4 million bbls to just 1.62 million bbls.

VLSFO and LSMGO look tight in the wider Middle Eastern region. They are in limited supply by the Suez Canal and Djibouti, and tight in Jeddah.

Omani ports including Sohar have normal availability of both VLSFO and LSMGO.

By Erik Hoffmann

Photo credit and source: ENGINE
Published: 20 September, 2023

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Bunker Fuel

ENGINE: Americas Bunker Fuel Availability Outlook (12 Dec 2024)

Fog season to impact US Gulf Coast bunkering; tight availability in West Coast ports; bunkering suspended in Zona Comun.

Published

1 day ago

December 13, 2024

Admin

The following article regarding bunker fuel availability in the Americas region has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

Fog season to impact US Gulf Coast bunkering
Tight availability in West Coast ports
Bunkering suspended in Zona Comun

North America

Bunker fuel demand has been good in Houston this week, but availability for all grades has been tight for prompt delivery dates. Most suppliers can offer VLSFO and LSMGO stems with a lead time of 6-7 days in Houston. HSFO will generally require a longer lead time.

Thick fog and reduced visibility are forecast for the rest of this week, which could disrupt bunkering operations and vessel traffic in Houston and at ports along the US Gulf Coast, bunker suppliers and shipping sources said.

A moderate to high risk of fog may lead to intermittent closures of the Houston Ship Channel starting later today and continuing through Thursday, sources said. The channel, a vital waterway for ports in Houston, Galveston, Baytown, and Texas City, often faces closures during the Gulf Coast’s winter fog season, which runs until March.

“Channel closures could lead to vessel congestion and supply delays,” one source said. “Barges transiting the ship channel, as well as cargo loading and reloading operations, may face intermittent delays,” a source added.

Ports such as Galveston, which rely on the Houston Ship Channel, are likely to be affected, although localised weather conditions can sometimes allow traffic in Houston to continue while operations at Galveston are suspended.

Securing both prompt and non-prompt stems for all fuel grades is tight at the New Orleans Outer Anchorage (NOLA) and in the Port of Mobile. Some suppliers are unable to provide an exact date for when they will have the supply available to resume offers.

In the Galveston Offshore Lightering Area (GOLA), bunker operations were suspended on Thursday morning due to rough weather conditions. A short window of calm weather on Friday morning could enable bunker operations to resume briefly in GOLA before conditions worsen again.

Prompt availability is tight in the West Coast ports of Los Angeles and Long Beach. Lead times of 8-10 days are generally recommended to secure VLSFO and LSMGO in both locations.

VLSFO and LSMGO availability is normal in the East Coast port of New York. Overall, bunker demand has been slow in New York so far this week.

Caribbean and Latin America

Bunker fuel demand has been normal in Panama's Balboa and Cristobal. Product availability is also good in both locations, with several suppliers able to supply all fuel grades with a lead time of 5-7 days.

Bunkering operations are expected to be suspended in Zona Comun on Thursday afternoon amid rough weather conditions. Bad weather is expected over the weekend, which may cause prolonged delays.

Demand has been good in Brazilian ports this week. Availability has been good in most of the ports, and some suppliers can offer grades at a lower price than usual, a source says.

By Debarati Bhattacharjee

Photo credit and source: ENGINE
Published: 13 December, 2024

Bunker Fuel

JLC China Bunker Fuel Market Monthly Report (November 2024)

China’s bonded bunker fuel sales rebounded in November, as bunker suppliers received more imported cargoes, also as a result of some ports’ and companies’ attempts to boost sales.

Published

2 days ago

December 12, 2024

Admin

JLC China Bunker Fuel Market Monthly Report (November 2024)

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for November 2024 with Manifold Times through an exclusive arrangement:

China’s bonded bunker fuel sales rebound in November

China’s bonded bunker fuel sales rebounded in November, as bunker suppliers received more imported cargoes, also as a result of some ports’ and companies’ attempts to boost sales.

The country sold about 1.52 million mt of bonded bunker fuel in the month, with daily sales at 50,647 mt, up by 8.03% from a month earlier, JLC’s data shows.

Bonded bunker fuel sales by Chimbusco, Sinopec (Zhoushan), SinoBunker and China Changjiang Bunker (Sinopec) settled at 320,000 mt, 570,000 mt, 62,000 mt and 15,000 mt in the month, while those by suppliers with regional bunkering licenses came in at 552,400 mt.

Overall bunkering demand was relatively fair in November, and bunker suppliers saw more inflows of imported low-sulfur fuel oil (LSFO). Meanwhile, some Chinese ports and bonded distributors made efforts to boost their sales to achieve their sales targets by the end of this year. However, there were also some companies cutting sales as they had completed their sales targets.

China’s bonded bunker fuel exports drop to 8-month low in October

China’s bonded bunker fuel exports plunged significantly in October, hitting an eight-month low, because of tight LSFO supply, while bonded bunker fuel imports surge to a 35-month high.

The country exported roughly 1.28 million mt of bonded bunker fuel in the month, the lowest level since February 2024, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC). The daily exports stood at 41,374 mt in October, down by 43.16% month on month and 11.99% year on year.

Among the cargoes, heavy bunker fuel exports settled at 1.20 million mt, accounting for 93.76% of the country’s total exports, while light bunker fuel exports came in at 80,000 mt, making up 6.24%.

Chinese refiners slashed their LSFO production as their export quotas tightened, coupled with the lingering impact from bad weather at certain ports, dragging down China’s bonded bunker fuel exports.

Refiners produced only 787,700 mt of LSFO in October, with the daily output at 25,410 mt, a loss of 23.23% month on month and 22.39% year on year, JLC’s data shows.

China’s bonded bunker fuel exports totaled 16.37 million mt in January-October, with the daily exports at 53,685 mt, a slip of 1.96% from the corresponding months in 2023, the data shows. In breakdown, heavy bunker fuel exports stood at 15.28 million mt, accounting for 93.32%, while light bunker fuel exports amounted to 1.09 million mt, accounting for 6.68%.

JLC China Bunker Fuel Market Monthly Report (November 2024)

Domestic-trade bunker fuel demand rallies in November

Domestic-trade bunker fuel demand rallied in November, as trade became more active amid increasing supply of consumption-tax-included resources.

Domestic-trade heavy bunker fuel demand settled at 380,000 mt in the month, a gain of 20,000 mt or 5.56% from the prior month, JLC’s data shows.

Regarding the consumption by region, the Bohai Rim still took a major share on the strength of competitive prices, while the turnover of other regions was limited.

At the same time, domestic-trade light bunker fuel demand jumped to 150,000 mt, up by 20,000 mt or 15.38% month on month. Participants were slightly bullish on light bunker fuel prices when transportation demand in inland rivers became seasonally strong and diesel demand from infrastructure construction increased.

Bunker Fuel Supply

China’s bonded bunker fuel imports surge again in October

Chinese companies boosted their bonded bunker fuel imports to 675,400 mt in October, a surge of 19.18% from the previous month and 66.93% from a year earlier. The imports reached the highest level since November 2021.

Bonded suppliers continued to boost their imports to meet demand when domestic supply tightened further. These distributors placed orders for a large amount of imported LSFO in late August and September, and some of the cargoes arrived in October, which also pushed up October’s LSFO arrivals. High-sulfur fuel oil (HSFO) imports climbed in October, while marine gas oil (MGO) imports held largely stable.

Regarding the imports by supplier, Malaysia remained the largest supplier with 271,300 mt, accounting for 40.17% of China’s total imports. Meanwhile, Singapore climbed to the second place with 265,800 mt, occupying 39.36%, followed by Russia with 56,900 mt, accounting for 8.42%. South Korea and Japan came in third and fourth with 42,900 mt and 38,500 mt, making up 6.35% and 5.69%, respectively.

In the first ten months, China imported about 4.03 million mt of bonded bunker fuel, soaring by 22.61% year on year, speeding up from an upsurge of 16.39% in January-September.

JLC China Bunker Fuel Market Monthly Report (November 2024)

Domestic-trade bunker fuel supply rises in November

Domestic-trade bunker fuel supply rose in November, because of more supply of blendstock.

Chinese blenders supplied about 400,000 mt of heavy bunker fuel in the month, a boost of 30,000 mt or 8.11% from the previous month, JLC’s data shows. More supply of low-sulfur residual oil and shale oil prompted blenders to ramp up their production.

Meanwhile, domestic-trade MGO supply leaped to 180,000 mt, up by 20,000 mt or 12.5% month on month. Refineries maintained high operating rates, coupled with rising diesel prices and relatively good diesel demand, leading to a surge in MGO supply.

JLC China Bunker Fuel Market Monthly Report (November 2024)

Bunker Prices, Profits

JLC China Bunker Fuel Market Monthly Report (November 2024)

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JLC Network Technology Co., Ltd is recognised as the leading information provider in China. We specialise in providing the transparent, high-value, authoritative market intelligence and professional analysis in commodity market. Our expertise covers oil, gas, coal, chemical, plastic, rubber, fertilizer and metal industry, etc.

JLC China Bunker Fuel Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market, demand, supply, margin, freight index, forecast and so on. The report provides full-scale & concise insight into China bunker oil market.

Note: China-based commodity market information provider JLC Technology has been providing Singapore bunkering publication Manifold Times China bunker volume data since 2020. Data from earlier periods are available here.

Photo credit: JLC Network Technology
Published: 12 December, 2024

Bunker Fuel Availability

ENGINE: Europe & Africa Bunker Fuel Availability Outlook (11 Dec 2024)

Prompt HSFO supply tight in the ARA; VLSFO tight in Las Palmas; strong VLSFO demand in Walvis Bay.

Published

2 days ago

December 12, 2024

Admin

The following article regarding Europe and Africa bunker fuel availability has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

Prompt HSFO supply tight in the ARA
VLSFO tight in Las Palmas
Strong VLSFO demand in Walvis Bay

Northwest Europe

HSFO supply is a bit tight for prompt delivery in Rotterdam and in the rest of the ARA, with lead times of 5-7 days recommended for the grade. VLSFO and LSMGO availability continues to be normal with lead times of 3-5 days.

The ARA’s independently held fuel oil stocks dipped by 2% in November compared to October, according to Insights Global data.

The region imported 301,000 b/d of fuel oil in November, an increase from 262,000 b/d imported in October, according to data from cargo tracker Vortexa. The ARA imported low-sulphur fuel oil (LSFO) and HSFO in a 51/49 ratio in November, unlike October's 45/55 ratio which was tilted towards HSFO.

The UK (16% of the total) was the region’s biggest fuel oil import source in November. The US (12%) ranked second and France (11%) at third. Other import sources were Sweden (10%) and India (9%).

The ARA hub’s independent gasoil inventories - which include diesel and heating oil - registered a 3% dip in November. The region imported 359,000 b/d of gasoil and diesel in November, a moderate decline from 411,000 b/d imported in October, according to Vortexa data.

In the German port of Hamburg, prompt supply is good across all three grades, a trader said. Lead times of 3-5 days are advised.

Mediterranean

HSFO and LSMGO tightness has eased in Gibraltar, a trader said. As a result, lead times have come down to 3-5 days for both grades. VLSFO lead time has remained consistent since last week with suppliers able to offer prompt delivery dates of 3-5 days across all three grades.

The port is forecast with calm weather for the rest of this week, before strong wind gusts of 20-25 knots are set to hit on Sunday and Monday. This may trigger bunkering disruptions in the port area.

In the Canary Islands’ Port of Las Palmas, VLSFO availability has tightened and a trader advises 5-7 days of lead time for the grade. Recent weather issues have caused some backlog, a trader said adding that VLSFO availability was tight for a couple of suppliers last week.

HSFO and VLSFO availability has been consistent in Las Palmas since last week, with suppliers unable to offer for very prompt delivery dates. Lead times of 5-7 days are advised for both grades in Las Palmas. Rough weather may disrupt bunkering in the port on Wednesday and Thursday, a source said.

Bunker availability is normal in the Spanish port of Barcelona with suppliers offering on a case-to-case basis, a trader said. Lead times of 5-7 days are advised for HSFO, VLSFO and LSMGO.

Availability is normal in the Portuguese ports of Lisbon and Sines, a source said. Lead times of 3-5 days are advised for all three grades.

Demand has been low in the Greek port of Piraeus, a trader told ENGINE. Despite low demand, prompt availability is tight and lead times of 7-10 days are advised for all three grades. This tightness could be exacerbated by a three-day refinery strike announced for Saturday in Piraeus, the trader said. Availability is expected to stabilise from Tuesday onwards.

Other Mediterranean bunkering locations such as off Malta and Istanbul have witnessed a spike in demand. Availability is tight in both locations. Rough weather is forecast off Malta and in Istanbul on Friday, which may disrupt bunkering, a source said.

Africa

In South Africa’s Durban and Richards Bay, VLSFO availability is still tight for prompt delivery dates, according to a trader. Lead times of 7-10 days are advised by traders for full coverage.

Prompt availability of LSMGO is still very tight in Durban. A trader advised lead times of 7-10 days for the grade. Rough weather is forecast in Durban on Friday, when strong wind gusts of 26 knots are forecast. After a brief window of calm weather on Saturday, wind gusts will escalate to 36 knots on Sunday and may impact bunkering in the area.

In Mauritius' Port Louis, prompt bunker availability is good for all three grades, a trader said. Bad weather may impact bunkering in Port Louis on Friday and Saturday.

Off Namibia's Walvis Bay has good bunker availability with around five days recommended for all three grades, according to a trader. VLSFO and LSMGO have witnessed strong bunker demand, the source added. Adverse weather is forecast off Walvis Bay from Wednesday. It could last well into next week and may impact bunkering in the area.

Meanwhile, civil unrest in Mozambique could trigger bunkering disruptions. Vessel operators and shipping companies should prepare for possible delays and interruptions, shipping agent Inchcape Shipping Services said. The country is facing civil unrest following the announcement of its national election results in October.

Ports in Mozambique are currently operational, but disruptions could be triggered by the civil unrest, the shipping agent added.

By Manjula Nair

Photo credit and source: ENGINE
Published: 12 December, 2024