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ENGINE: East of Suez Bunker Fuel Availability Outlook

29 Jun 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:

28 June 2022

  • Availability improves in Hong Kong
  • Bad weather triggers suspension and delays in Zhoushan
  • VLSFO availability remains tight in Fujairah amid refinery maintenance

 

Singapore

Bunker fuel availability remains tight across all grades in Singapore. VLSFO is particularly tight and prompt deliveries remain difficult to find.

Recommended lead times are around 12-15 days for VLSFO and 9-10 days for HSFO, while LSMGO requires a shorter lead time of 8-9 days.

Singapore’s middle distillate stocks rose to fresh multi-week highs, while fuel oil stocks have recovered in its latest week and remain above last month’s average, according to Enterprise Singapore.

The port’s fuel oil imports fell by a massive 39% in the week to 22 June. But its average imports in June until last week have outweighed May’s average.

 

East Asia

VLSFO and LSMGO availability has improved in Hong Kong as more replenishment stocks arrive, sources say. Recommended lead times are around 4-5 days.

Prompt deliveries are tight in South Korean ports. Recommended lead times across all grades are around 14-17 days in southern and western South Korean ports.

Bunker deliveries remain suspended amid bad weather in Zhoushan. Rough weather has disrupted bunker operations in Zhoushan since the weekend. However, calmer weather conditions expected from Thursday could help in restoring operations, sources say.

Suppliers are offering VLSFO and LSMGO earliest deliveries from 30 June as the weather is expected to calm down, a source says. VLSFO availability has improved in Zhoushan, while HSFO availability remains tight as only some suppliers can offer the grade.

VLSFO availability is tight in Shanghai as most suppliers are almost out of stock, but one supplier has sufficient availability of the grade and can offer deliveries from 30 June onwards. LSMGO is more readily available for prompt dates.

LSMGO availability is normal in the Philippines’ Manila, where a supplier can offer prompt deliveries.

VLSFO availability is normal in Indonesia’s Jakarta and Surabaya. Recommended lead times are around 3-5 days.

 

South Asia

Bunker fuel availability remains normal in India’s Mumbai, despite maintenance at the Indian state-owned Bharat Petroleum Corporation’s (BPCL) Mumbai refinery. BPCL has halved crude processing capacity at its Mumbai refinery to conduct maintenance work that commenced on 10 June and is expected to go on for 20-25 days.

Prompt VLSFO and LSMGO stems are available with some suppliers in Mumbai.

VLSFO and LSMGO availability has improved in Vishakhapatnam on India’s east coast.

In Sri Lanka’s Colombo, availability is slightly tight across all grades. Recommended lead times for VLSFO and LSMGO are around eight days. A supplier can offer deliveries for prompt dates.

 

Middle East

All fuel grades are in tight availability for prompt dates in Fujairah. VLSFO and LSMGO prompt deliveries are more difficult to find.

A major refinery is still undergoing maintenance in Fujairah. This has tightened VLSFO availability. The refinery is a key source of VLSFO for the domestic bunker market and exports, sources say

The refinery is likely to restart operations by the end of this week, which could take some pressure off the bunker market, a trader says.  A supplier can offer VLSFO from 8 July onwards. Recommended lead times for VLSFO and LSMGO are around 10-12 days, while HSFO has a shorter lead time of five days.

LSMGO availability is tight in Saudi Arabia’s Jeddah, making lead times unpredictable.

 

Photo credit and source: ENGINE
Published: 29 June, 2022

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