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ENGINE: East of Suez Bunker Fuel Availability Outlook

09 Feb 2022

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:

  • Bunkering ramps up after Lunar New Year holiday
  • Regional fuel availability still tight
  • Singapore demand slows amid rallying prices

Bunker supply resumed fully in Zhoushan, Hong Kong and South Korea in the past week after muted activity during the Lunar New Year holiday.

VLSFO and HSFO380 availability remains tight in Zhoushan. One supplier has run out of HSFO380, says a source. Some suppliers are charging a barging premium for LSMGO stems of less than 100 mt in the Chinese port, says a source.

In Hong Kong, VLSFO supplies are expected to remain tight through the week, after coming under pressure from stronger demand leading up to the Chinese Lunar New Year holiday.

Bunker fuel deliveries resumed in South Korean ports on 3 February, after the Korean New Year holiday. VLSFO and LSMGO lead times in South Korea’s southern and western ports are up to 11-13 days, while HSFO380 is more readily available at nine days out.

In Japan’s Tokyo Bay area, suggested lead times across fuel grades have improved to 6-7 days out, says a source. Bunker fuel availability remains tight in the country’s western port areas of Kyushu, Setouchi and Osaka Bay, with suggested lead times of up to two weeks out.

Prompt VLSFO availability in Singapore remains tight with low availability of blends combining with Brent’s recent rally to push up the price of finished product. Demand has slowed with the price increase, says a source.

Singapore witnessed an 82% drop in net fuel oil imports in the week to 2 February, contributing to a stock draw. Its fuel oil stocks were down 3% on the week to 23.09 million bbls, Enterprise Singapore data showed.

The port’s middle distillate stocks fell by 3% in the most recent week, to 8.21 million bbls.

Suggested VLSFO and HSFO380 lead times are roughly similar on the week, to 10-11 days out. LSMGO lead times are relatively shorter at around seven days out.

In Fujairah, availability across fuel grades remains tight owing to a slowdown in oil production, resulting from a delay in arrival of fuel oil blends, says a source. Lead times for VLSFO and LSGMO are slightly up this week to nine days out, and HSFO380 lead times are up to 11 days.

Fujairah’s heavy distillates and fuel oil inventories jumped 16% to a nine-week high of 11.38 million bbls on 2 February, according to Fujairah Oil Industry Zone and S&P Global Platts data.

 

Photo credit: ENGINE
Published: 9 February, 2022

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