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:
31 May 2022
- Availability remains tight in Hong Kong
- Singapore suppliers struggle to offer prompt deliveries
- Gasoil more available than fuel oils in Zhoushan
Singapore
Bunker fuel availability remains tight across all grades in Singapore. Recommended lead times for VLSFO and HSFO are up to two weeks, and LSMGO around 7-10 days.
Some suppliers can offer HSFO for earlier dates, but prompt VLSFO deliveries are difficult to find, sources say.
Singapore’s residual fuel oil stocks have averaged 5% lower in May than in April, and middle distillate stocks 8% lower, according to Enterprise Singapore.
Cargo tracker Vortexa projects that Singapore’s total fuel oil imports could reach 792,000 b/d for the whole of May, which is higher than April’s 647,000 b/d. Inflows from Brazil and Russia are estimated to have surged and made them Singapore's top two and three import sources. The UAE has retained its place as the top source.
According to the data, high sulphur fuel oil imports will make up nearly 65% of total fuel oil imports in May, while low sulphur fuel oil inflows are down.
East Asia
Bunker demand remains robust in Hong Kong and supply is not keeping up with demand, making lead times more unpredictable, sources say.
Supply dates for all fuel grades remain subject to enquiry in Hong Kong as suppliers struggle to cater to both prompt deliveries and delivery dates further out. Availability is expected to improve in the second half of June as more replenishment cargoes arrive, a source says.
Availability remains tight across all grades in South Korea's Yeosu, Busan and Ulsan, with recommended lead times of around 7-10 days.
Supply is tight in China’s Zhoushan and Shanghai. Most suppliers are unable to offer HSFO and VLSFO for delivery dates in early June due to a lack of product, sources say.
Some suppliers in Zhoushan can offer VLSFO from 10 June onwards. LSMGO availability is slightly better with some suppliers offering prompt deliveries, sources say.
A supplier in Shanghai is out of VLSFO, adding more pressure on others’ supply, sources say.
In the Philippines’ Manila, LSMGO availability is normal and recommended lead times are around three days, a source says. Bunker demand has been sluggish.
Bunker fuel availability is normal in Port Klang. A supplier can offer limited quantities of VLSFO and LSMGO for prompt dates, sources say.
South Asia
Bunker fuel availability in the Indian ports of Mumbai and Kochi is normal. Some suppliers can offer prompt deliveries of VLSFO and LSMGO, a source says.
In the Pakistani ports of Karachi and Qasim, availability is normal for VLSFO and LSMGO. Only one local refinery is currently producing VLSFO while other refineries could start producing the grade in the coming months, a trader says.
In Sri Lanka’s Colombo, availability is slightly tight across all grades. A supplier has low stocks of VLSFO and LSMGO. Another supplier can offer both grades, but prompt deliveries are made difficult by a busy barge schedule, sources say.
HSFO availability is normal as a supplier has recently received a replenishment cargo, a source says. Port congestion has eased in Colombo to allow for smooth operations.
Middle East
In Fujairah, availability of HSFO is tight for prompt deliveries and recommended lead times are around 10 days. VLSFO and LSMGO grades have shorter lead times of seven days.
Prompt deliveries remain difficult to find in Fujairah forcing some buyers to look out for bunker options in other UAE ports such as Dubai, a source says.
In Iraqi Basra, availability remains normal for VLSFO and LSMGO, sources say. A supplier can offer some prompt deliveries.
VLSFO availability in Saudi Arabia’s Jeddah is normal, while LSMGO is slightly tighter, sources say.
Bunker fuel availability is normal in the Omani ports of Duqm and Sohar. A supplier can offer prompt deliveries for VLSFO and LSMGO.
Photo credit and source: ENGINE
Published: 1 June, 2022