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:

2 November, 2021

Weather disruptions are expected in Zhoushan, and VLSFO supply has tightened further in Singapore.

Rough weather could disrupt bunkering in Zhoushan from Friday and intensify in strength over the weekend. Bunker deliveries could be suspended, sources say.

Wind gusts are expected to pick up from Friday, and reach up to 27 knots on Saturday. After a relative calm on Sunday, a gale of 36 knots is expected on Monday morning.

Supply of VLSFO and LSMGO is readily available in Zhoushan with 2-3 days of lead time advised, while HSFO380 is tight, with only one supplier currently offering it. Another supplier is expected to replenish stocks with an incoming cargo on 4 November.

The same situation has been observed in Shanghai lately, where HSFO380 has been more difficult to source for prompt dates. Shanghai’s low sulphur fuels stems require similar lead times as in Zhoushan.

Singapore’s residual fuel oil stocks added another 1% in the week to 27 October, even as net imports fell by 50%, according to Enterprise Singapore.

Despite more fuel oil in storage, Singapore’s bunker market continues to be very tight for another week with recommended lead times going up further. VLSFO now requires 14 days ahead in the bunkering hub, which is the longest among East of Suez ports. LSMGO is slightly more available at 6-8 days, while lead times for HSFO380 are steady on the week at 10-12 days.

Terminal congestion delayed barge loadings in Singapore after a Covid-19 outbreak three weeks ago, and the effects are still felt in the market.

Fujairah’s bunker market continues to be tight for all three fuel grades, although lead times have come down some on the week.

HSFO380 now requires 11 days of lead time in the UAE bunkering hub down from 14 days last week, and similar to Singapore’s recommended lead times. VLSFO and LSMGO are slightly more readily available at nine days ahead.

Fujairah’s fuel oil stocks held roughly steady at 7.70 million bbls in the week to 26 October, data from the Fujairah Oil Industry Zone (FOIZ) and S&P Global Platts showed last week.

Photo credit: ENGINE
Published: 3 November, 2021