ENGINE: East of Suez Bunker Fuel Availability Outlook

Prompt VLSFO availability remains tight in Singapore, with several bunker suppliers running low on stocks. Barge availability is also tight, which has added to the tightness in the port. Most suppliers are recommending lead times of 9–13 days for VLSFO.

HSFO availability continues to be tight, with recommended lead times of 8–11 days. Several suppliers are recommending varied lead times for LSMGO, from as short as two days to almost 10 days.

According to data from Enterprise Singapore, residual fuel oil stocks in Singapore averaged 3% lower in July compared to June. The port’s fuel oil stocks have stayed below 20 million bbls for the fourth consecutive month, despite a significant 24% increase in the port’s net fuel oil imports in July. Fuel oil imports rose by 757,000 bbls in July, while fuel oil exports dipped by a modest 10,000 bbls. Conversely, the port’s middle distillate stocks rose, averaging 14% higher in July.

In Malaysia’s Port Klang, VLSFO and LSMGO remain in good supply, with certain suppliers offering prompt deliveries for smaller quantities. HSFO availability is limited in the Malaysian port.

East Asia

In Zhoushan, the availability of all fuel grades is good, with several suppliers recommending lead times of 4-6 days for VLSFO and LSMGO, and 5-7 days for HSFO.

In Northern China, the availability of VLSFO and LSMGO is quite good in ports of Dalian, Qingdao, and Tianjin. HSFO supply is somewhat limited in Qingdao and Tianjin ports. Shanghai port boasts a robust supply of VLSFO and LSMGO, but the availability of HSFO is rather limited. Ports of Fuzhou and Xiamen have good availability of VLSFO and LSMGO grades, but in Guangzhou and Yangpu ports, prompt availability is somewhat constrained.

In Taiwanese ports such as Hualien, Kaohsiung, Taichung and Keelung, VLSFO and LSMGO deliveries are available with lead times of 2-3 days.

In Hong Kong, bunker fuel supply remains robust amid average demand. The majority of suppliers are recommending lead times of around seven days, in line with the previous week.

In South Korean ports, lead times for VLSFO and LSMGO continue to vary widely between 3-9 days, similar to last week. However, HSFO availability has improved, with lead times decreasing from 8-14 days last week to around six days now.

High waves are forecasted to hit the South Korean ports of Ulsan, Onsan, Daesan, Taean, and Yeosu between 9-11 August, potentially impacting bunker operations at these ports.

In Japan, LSMGO supply remains strong in major ports, including Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya, Yokkaichi, Mizushima, and Oita. However, VLSFO availability has tightened across all major ports due to unknown technical issues at refineries. This supply tightness is particularly noted in Tokyo, Chiba, Yokohama, Kawasaki, Nagoya, and Yokkaichi, with expectations that it will continue until mid-August, according to a source.

Prompt availability of HSFO is constrained across most Japanese ports.

Additionally, adverse weather conditions are forecast for Ho Chi Minh in Vietnam on Sunday, raising concerns about potential bunkering disruptions in the port.

Oceania

In Western Australia, ports such as Kwinana, Fremantle, and Kembla have a good supply of VLSFO and LSMGO, with the usual lead times being 7-8 days. In New South Wales, Sydney has an adequate supply of LSMGO, while the prompt availability of HSFO is subject to enquiry.

In Victoria, the ports of Melbourne and Geelong have a good supply of VLSFO and LSMGO, but prompt deliveries of HSFO can be difficult. In Queensland, the ports of Brisbane and Gladstone have sufficient stocks of VLSFO and LSMGO with lead times of around 7-8 days, but the availability of HSFO is limited in Brisbane.

In New Zealand, the ports of Tauranga and Auckland have decent VLSFO supply available, and Auckland also has a good supply of LSMGO. Rough weather conditions in Tauranga on Thursday may affect bunker operations.

South Asia

In several ports across India, including Kandla, Mumbai, Tuticorin, Chennai, Cochin, and Visakhapatnam, the availability of VLSFO and LSMGO continues to be limited, as it has been in recent weeks. In Haldia, the availability of both grades is tight as a supplier is running low on stock.

The ports of Kandla and Sikka are expected to experience intermittent rough weather throughout the week, which could potentially disrupt bunker operations.

On the other hand, the port of Colombo in Sri Lanka has ample VLSFO, LSMGO, and HSFO available. Lead times of around six days are recommended to secure the grades at the port.

Middle East

Prompt availability of all fuel grades remains limited in Fujairah, with most suppliers advising lead times of approximately 7–10 days, almost the same as last week.

In Iraq’s Basrah, VLSFO and LSMGO are readily available, while both grades are nearly exhausted in Qatar’s Ras Laffan.

The port of Jeddah in Saudi Arabia has an abundant supply of LSMGO, but the availability of VLSFO is limited. In Djibouti, the supplies of both VLSFO and LSMGO are constrained. Omani ports, including Sohar, Salalah, Muscat, and Duqm, have sufficient LSMGO available to cater to prompt demand.
Source: ENGINE, By Tuhin Roy, https://engine.online/news