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ENGINE: East of Suez Bunker Fuel Availability Outlook

Bunker fuels continue to be tight across East of Suez ports, with lead times for low sulphur fuel stems in Singapore steady on the week.

Lead times for VLSFO and LSMGO stems in Singapore are unchanged on the week, at nine days and six days respectively.
Singapore’s fuel oil stocks, rose by 7% on the week reaching a six-week high of 21.90 million bbls, according to Enterprise Singapore data published last week. HSFO380 stems continue to be tight in the port with 12-15 days needed ahead, despite more fuel oil in storage.

Fujairah’s lead times for VLSFO and LSMGO stems have gone up by one day on the week, to stand at seven days now. HSFO380 stems are still tight in the bunkering hub, but lead times for the high sulphur fuel have come down by two days to 10 days now.

Fuel availability has improved again in Zhoushan this week, after temporarily tightening last week. Lead times in the Chinese port have been halved to three days. Fuel availability is also good in the neighbouring port of Shanghai, with suppliers able to deliver on prompt basis with lead times at two days ahead. There is ample supply of bunker fuels in the two Chinese ports, which has contributed to shorten lead times.

Low sulphur bunker fuels have tightened in South Korean ports on the week. Busan’s lead times for VLSFO and LSMGO have increased by two days, and several suppliers now require stems to be booked up to five days ahead. HSFO380 supply is still limited in ports throughout South Korea.

Bunker fuels are also scarce in Russia’s Far East ports. Cargoes are being sold to support export contracts, which has tightened the bunker market, according to trading sources. Market participants expect the Far East Russian market to remain tight until the second half of March.

All bunker fuels continue to be tight in Tokyo Bay, with lead times for low sulphur fuels stems stretching up to 10 days now. One supplier is operating under berth restrictions due to carried out maintenance in Tokyo Bay, contributing to the port’s tightness. However, some suppliers could deliver on shorter notice of 7-8 days. Rough weather has been disrupting bunkering operations in Tokyo Bay several times in the past few weeks and delayed delivery schedules. But the weather has calmed in the port.

Japanese low sulphur fuel oil (LSFO) stocks dropped by 5% to 4.24 million bbls last week, which is their lowest levels since mid-November of last year. Japan’s LSFO exports more than doubled on the week to 532,000 bbls, supporting the stockdraw. Japan did not import any LSFO for a second week in a row.

Following the same pattern as for LSFO exports, Japan exported 688,000 bbls of HSFO – the highest levels in many months. HSFO380 stems remain tight in Tokyo Bay.
Source: ENGINE (https://engine.online/)

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