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ENGINE: East of Suez Bunker Fuel Availability Outlook

17 Aug 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:

16 August 2022

  • Fujairah bunkering inches closer to normal operation
  • Bunker demand sluggish in China’s bunker hub – Zhoushan
  • Singapore’s Hi5 spread narrows further

 

Singapore

VLSFO and HSFO supply remains “super tight” for prompt dates in Singapore. Recommended lead times are around 9-12 days.

Bunker demand has been normal in Singapore so far this week. A series of VLSFO and LSMGO stems were fixed at the beginning of the week, while HSFO fixtures have been fewer. 

Singapore’s residual fuel oil inventories have been drawn for five consecutive weeks amid lower imports and have averaged 12% lower so far this month than in July, while its middle distillate stocks are up by 3% on the month, according to Enterprise Singapore.

Tightening HSFO availability prospects and a steep decline in Singapore’s VLSFO price in recent weeks have contributed to narrow the port’s Hi5 spread to $220/mt, which is less than half its peak above $570/mt around mid-July.

LSMGO remains more readily available, and its lead times remain steady at 4-6 days.

 

East Asia

VLSFO and LSMGO availability is normal in China’s Zhoushan and Shanghai. Prices of the two grades in Zhoushan have come under pressure in recent weeks due to ample stocks in the port and weak demand, sources say.

Securing HSFO for prompt dates in Zhoushan and Shanghai is slightly difficult as fewer suppliers offer the grade, sources say.

Suppliers in Zhoushan struggled to deliver stems outside of the port’s outer limit (OPL) and Tiaozhoumen anchorage on Tuesday due to rough weather conditions, sources say.

Availability is normal across HSFO, VLSFO and LSMGO grades in Hong Kong as suppliers have ample stocks. Recommended lead times are around 4-5 days.

Bunker fuel availability is normal across all grades in South Korea’s Busan. Recommended lead times for VLSFO and LSMGO is around five days.

VLSFO and LSMGO availability is tight for prompt dates in Vietnamese ports. A supplier can offer VLSFO for prompt dates but on cash in advance basis, sources say.

LSMGO availability is normal in Philippines’ Manila. A supplier can offer deliveries for prompt dates.

 

South Asia

Availability of LSMGO and VLSFO remains normal in India’s Mumbai. Prompt VLSFO supply is tight in Mundra on India’s northwest coast and requires around six days of lead time, while HSFO has a shorter lead time of 3-4 days.

VLSFO supply is almost out of stock in Visakhapatnam and Kakinada on India’s east coast, where a supplier expects to receive replenishment stock by next week. LSMGO is more readily available.

Bunker fuel availability is normal in Colombo and Trincomalee, and some suppliers can offer VLSFO and LSMGO for prompt dates, sources say. HSFO availability is normal, but typically requires at least 4-5 days of lead time as the grade is supplied by a smaller number of suppliers.

 

Middle East

Bunker operations in Fujairah have nearly normalised after the port’s terminals were hit with heavy flooding in late July. Barge loading delays and congestion have come down in Fujairah as more terminals have resumed normal operations, sources say

VLSFO and LSMGO availability is tight in Fujairah for prompt dates. Some suppliers can offer VLSFO for prompt dates, but these are typically priced higher. Prompt stems have typically been priced $50-55/mt higher than for dates further out, while in some cases premiums can go even higher, a source says.

Recommended lead times for VLSFO and LSMGO are around six days. HSFO availability is normal, and some suppliers can offer limited quantities for prompt dates. 

VLSFO and LSMGO availability is normal in Oman’s Sohar. Some suppliers resumed VLSFO offers from last week after Sohar’s sole barge was able to load the fuel from Fujairah, sources say.  

VLSFO availability is normal in Saudi Arabia’s Jeddah, while LSMGO is said to be tight, according to sources.

 

Photo credit and source: ENGINE
Published: 17 August, 2022

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