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ENGINE: East of Suez Bunker Fuel Availability Outlook

20 Jul 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:

19 July 2022

  • Tight VLSFO pushes Singapore Hi5 spread to new all-time highs
  • Zhoushan’s VLSFO price drops to bigger discounts to other hubs
  • Availability remains normal in Hong Kong

 

Singapore

VLSFO supply continues to be tight in Singapore. Demand for prompt stems have increased in recent weeks, resulting in high price premiums for prompt delivery dates, a trader says.

The market is likely to remain tight throughout this month, and no relief expected anytime soon, sources say.

The port’s Hi5 spread touched new all-time highs of $577/mt on Monday amid tight VLSFO supply.

Recommended lead times are around 13-15 days for VLSFO and 9-13 days for HSFO, while LSMGO lead times have gone up to 9-12 days.

 

East Asia

Zhoushan has been pricing VLSFO lower against other hubs, with its benchmark widening to a $63/mt discount to Singapore, and $57/mt to Fujairah on Tuesday.

Some suppliers in Zhoushan can accommodate prompt stem sizes less than 700 mt, while larger stems typically require seven days of lead time, sources say. LSMGO is more readily available.

VLSFO supply remains tight in Shanghai as a supplier is running low on stocks, sources say.

Availability is normal across all grades in Hong Kong. Recommended lead times for VLSFO and LSMGO are around 3-5 days. Some suppliers can offer LSMGO for prompt dates.

Bunker demand in the Philippines’ Manila has been sluggish in recent months amid higher prices, sources say. Recommended lead times for VLSFO and LSMGO are around 3-5 days.

 

South Asia

Availability of VLSFO and LSMGO is normal in India’s Mumbai. The grades are available with some suppliers for prompt dates, sources say.

Meanwhile, availability remains tight in Mundra on India’s northwest coast. Recommended lead times for VLSFO are around 9-10 days. LSMGO remains out of stock.

In Sri Lanka’s Colombo, prompt VLSFO and LSMGO are slightly tight. Recommended lead times are around 5-7 days.

 

Middle East

All fuel grades are in tight availability for prompt dates in Fujairah. VLSFO supply is tight as production at a local refinery has yet to return to normal after it underwent maintenance in recent weeks. Production is likely to improve from next month, a trader says.

Recommended lead times are around 9-10 days for VLSFO in Fujairah, and 6-7 days for HSFO, while LSMGO lead times are shorter at 4-5 days.

Suppliers in the Omani ports of Duqm and Sohar have normal availability of LSMGO. A supplier can offer prompt deliveries, a source says.

 

Photo credit and source: ENGINE
Published: 20 July, 2022

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