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ENGINE: East of Suez Bunker Fuel Availability Outlook

Rough weather has disrupted bunker deliveries in Zhoushan and South Korean bunkering hubs, while Singapore continues to see tightness on the back of terminal congestion.

Rough weather has suspended bunkering operations in the South Korean ports of Busan, Ulsan and Yeosu.

The ports were forecast to experience gale-force wind gusts in the range of 27-38 knots on Tuesday and Wednesday. Bunkering may resume on Wednesday evening, subject to weather changes, a source says.

Bunkering fuel availability remains tight in the South Korean ports, but could see more volumes to supply soon as an incoming VLSFO cargo is expected to replenish stocks on 3 December. Suggested lead times of seven days for fuels may be extended due to the weather disruptions.

Zhoushan’s bunkering operations have been suspended since Sunday amid bad weather in the region. However, the nearby port of Shanghai is still operating, a source says. VLSFO stocks are set to be replenished with the arrival of new cargo on 2 December, and an LSMGO cargo is set to arrive on 4 December.

In Hong Kong, operations may be suspended by gale on Wednesday, a source says. VLSFO availability has been tight at the port amid high demand and limited supply, with just two suppliers having product.

Fuel availability remains tight in Japan’s Tokyo Bay as well, amid refinery maintenance and power sector demand for fuel oil. Spiked gas prices have spurred higher demand for fuel oil for power generation, capping availability in the bunker market. VLSFO and HSFO380 availability is tight in Tokyo, with a waiting time of up to seven days. LSMGO is more readily available.

Singapore continues to see experience delaying barge loadings several weeks after a Covid-19 outbreak capped manpower at a loading terminal. VLSFO supply is tight with lead times of up to 11 days, while LSMGO lead times are steady on the week at eight days. HSFO380 lead times remain up to 12 days, with fewer suppliers offering the grade than the low sulphur grades.

The bunkering hub saw its residual fuel oil stocks rise to 11-week highs of 22.90 million bbls after a 10% increase in net imports, according to Enterprise Singapore. Singapore mainly imported fuel oil from Fujairah and Saudi Arabia’s Jizan in the week, but also from a range of other Middle Eastern, Asian, African, and South American countries. Fuel oil cargoes departed from Singapore for Fujairah, China, Taiwan and Indonesia.

In Fujairah, lead times for low sulphur fuel are longer this week, with the earliest expected delivery date for VLSFO and LSMGO around eight days out. HSFO380 is more available in the UAE bunkering hub, however, with lead times stretching to five days.

At the same time, Fujairah’s fuel oil stocks shrunk by 15.8% in the week to 22 November, which was the sharpest drop since early March, the most recent data from Fujairah Oil Industry Zone (FOIZ) and S&P Global Platts showed.
Source: ENGINE (https://engine.online/)

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