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:
3 May 2022
Singapore
HSFO380 availability remains “super tight” in Singapore. Recommended lead times are up to three weeks. Two suppliers can offer with a shorter 10-11 days of lead time, a trader says. Recommended VLSFO lead times are around two weeks, while LSMGO has a shorter lead time of 5-6 days.
Prompt deliveries remain difficult to find. Some suppliers can offer but priced at a premium, a trader says.
Bunker demand was strong last week as buyers were seen rushing to fulfil their requirements before the Eid holidays, a trader says. Certain suppliers were experiencing fuel oil loading delays of around two days in Singapore last week, according to shipping agent Orient Maritime Agencies.
Singapore’s residual fuel oil and middle distillate stockpiles dropped by 17-22% last week after posting massive growth in the previous week, according to Enterprise Singapore. Fuel oil stocks were drawn to their lowest point in seven months.
Last week saw large HSFO380 cargoes depart Singapore for the Philippines and Bangladesh, and large low sulphur fuel oil cargoes depart for Hong Kong and another unnamed destination. These outflows contributed towards the stock draw for fuel oil.
For April as a whole, Singapore mostly exported fuel oil to Bangladesh, China, Philippines, US and Malaysia, according to Vortexa cargo data. Imports came from the UAE, Indonesia, US, Brazil and Japan.
East Asia
Hong Kong’s bunker demand has been robust in the weeks since quarantine restrictions were lifted and contributed to tighten supply. Recommended lead times for VLSFO and LSMGO are around 7-8 days. HSFO380 is tight and only available with some suppliers.
Availability remains tight in South Korean ports. Recommended lead times for VLSFO and LSMGO grades are 6-7 days in Ulsan, Busan and Yeosu, sources say.
Zhoushan is seeing tighter availability of VLSFO and LSMGO, with recommended lead times of 5-6 days. Prompter deliveries are difficult now, a source says. Two suppliers in Zhoushan have no VLSFO to offer. HSFO380 is also tight with only two suppliers currently offering it.
Prompt deliveries are tight for VLSFO and LSMGO in Port Klang, a trader says.
Availability of VLSFO and LSMGO is normal in Indonesia’s Jakarta and Surabaya. A supplier can offer limited prompt deliveries.
South Asia
Bunker fuel availability remains normal in India’s Mumbai. Demand has been sluggish in recent days, a trader says. Some suppliers can offer prompt limited deliveries. In Mundra, HSFO380 and VLSFO availability is slightly tight and recommended lead times are around 7-8 days, while LSMGO is unavailable, sources say.
Availability in Visakhapatnam is normal for VLSFO and LSMGO, where a supplier can offer prompt deliveries. Demand has been reported normal.
In Colombo, availability is tight across all grades. Some suppliers have already sold off stems from their fuel oil and gasoil inventories and are unable to provide offers, a trader says. HSFO380 is tight as only a few suppliers can offer the grade.
Supply is likely to improve in Colombo as replenishment stocks are set to arrive over the coming weeks, sources say.
Chittagong faced severe port congestion last week due to the upcoming Eid holiday, a trader says. Availability is tight for LSMGO, and lead times are unpredictable.
Middle East
In Fujairah, prompt product is in tight supply due to the Eid holidays. Recommended lead times are around 6-7 days for VLSFO and LSMGO.
Four suppliers can offer HSFO380 in Fujairah, two of which have their earliest delivery dates 10-12 days out. The two others can deliver with 4-5 days of lead time, but with price premiums incurred, sources say.
Prompt deliveries have become slightly tighter in Omani ports of Duqm and Sohar, a trader says. Demand is said to be normal.
Photo credit and source: ENGINE
Published: 4 May, 2022
Alexandros Margaritis brings 14 years of experience; has worked at Singapore and Dubai’s bunkering sectors.
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