ENGINE: East of Suez Bunker Fuel Availability Outlook
• Prompt fuel still tight in Singapore and Fujairah
• Bad weather triggers suspension and delays in Zhoushan
• HSFO availability tight in Hong Kong
HSFO and VLSFO grades remain tight in Singapore compared to LSMGO. Recommended lead times for HSFO and VLSFO are around 8-10 days, and LSMGO 4-6 days.
Singapore’s residual fuel oil stockpiles have been building for three weeks despite a sharp decline in net imports, according to Enterprise Singapore data.
The port’s middle distillate stocks, which include gasoil and other products, fell further on the week, and remain at five-year lows.
Lead times for VLSFO and LSMGO in Fujairah are mostly steady on the week at up to seven days out, while HSFO lead times are about 10 days out.
Suppliers in Fujairah are still avoiding some offers for larger stem sizes due to the volatility in the market, sources say.
Bunker operations resumed for short time in Zhoushan at the beginning of the week, before getting suspended again due deteriorating weather conditions, sources say. Demand has been weak over the past few weeks in the Chinese port.
Recommended lead times in Zhoushan for VLSFO and LSMGO is around 4-5 days, while HSFO is tighter as only two suppliers can offer the grade. Bad weather is forecast again from Friday, which could trigger renewed suspensions and delay bunkering through the weekend.
China has eased lockdown restrictions in certain areas in Shenzhen. Ports in the Shenzhen area imposed strict Covid-19 testing protocols and closed some warehouses last week. These warehouses have now reopened, according to freight forwarder SEKO Logistics.
In Hong Kong, HSFO availability is tighter compared to VLSFO and LSMGO.
South Korea’s southern ports of Busan, Ulsan and Yeosu continue to see tight prompt availability. Suggested lead times across fuel grades in these ports are 9-10 days out.
Fuel availability is tight at Malaysia’s Port Klang, but some suppliers can offer limited prompt deliveries, sources say.
Indonesia’s state-owned oil company Pertamina is planning to start offering bunker supplies at Nipa Island near Singapore. The company intends to offer 0.50% MGO, LSMGO and VLSFO at the location.
Bunker fuel oil availability is normal at India’s Mundra port, sources say. Recommended lead times are around 6-7 days across all grades.
Availability remains tight at Port Suez due to low production from a local refinery, sources say.
Source: ENGINE (https://engine.online/)