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ENGINE: East of Suez Bunker Fuel Availability Outlook

Singapore
HSFO availability remains “super tight” in Singapore. Recommended lead times are up to two weeks. Some suppliers can offer with shorter lead time but priced at a premium, a trader says. Recommended lead times for VLSFO are around 10-13 days, while LSMGO has a shorter lead time of 4-7 days.
Bunker demand is said to be normal in Singapore, sources say.

The Maritime and Port Authority of Singapore (MPA) launched an investigation into HSFO contamination in the port when alarms were raised in March. The MPA has now found that HSFO contaminated with organic chlorides was loaded at the UAE’s Port of Khor Fakkan before being shipped as cargo to Malaysia’s storage facility in Tanjong Pelepas, where it was further blended and later delivered to storage facilities in Singapore.

As a preventive measure, the MPA has made Chlorinated Organic Compounds testing mandatory as part of its fuel quality measures.
Singapore’s weekly middle distillate stocks plunged 11% lower in the week to 4 May, when they were only at half their levels of a year earlier, according to Enterprise Singapore. Residual fuel oil inventories, meanwhile, grew by 6% on the week.
Singapore increased its fuel oil imports from Brazil, Venezuela and Japan in the first week of May compared to the monthly average for April, according to cargo tracker Vortexa.

Nearly half of its fuel oil exports were bound for China in the first week. Cargoes have also increasingly departed for Saudi Arabia, ahead of its summer season and peak demand for fuel oil to power air-conditioning systems.

East Asia
Bunker demand has been stronger in Hong Kong in the weeks since quarantine restrictions were lifted. The flow of enquiries was good in April and that trend has continued into this month, a trader says. This contributed to tighten supply into May.
VLSFO availability has later improved in Hong Kong as suppliers have brought in replenishment cargoes to cater to the pickup in demand, sources say. Recommended lead times are around 5-7 days. A supplier expects a VLSFO replenishment cargo to arrive by 13 May, a source says.

HSFO is tight in Hong Kong as only available with some suppliers. LSMGO availability is good, and some suppliers can offer prompt deliveries.

In South Korean ports, bunker fuel availability is tight across all grades. Two refineries have stopped offering bunker fuels for the rest of the month due to low inventories and pressure to meet domestic fuel demand. Recommended lead times are around 7-10 days across all grades.
Demand is said to be normal in South Korean ports.

Availability of VLSFO and HSFO is tight in Zhoushan, sources say. Recommended lead times for VLSFO are around 10 days, while some supplier can offer limited prompt deliveries. LSMGO availability is better and prompt deliveries is possible. Bunker demand has picked up this month, sources say.

In the Philippines’ Manila, availability for LSMGO is normal with recommended lead times at around three days.

South Asia
Bunker fuel availability remains normal in India’s Mumbai. Some suppliers can offer prompt limited deliveries. In Mundra, VLSFO and HSFO availability is normal and recommended lead times are around 6-7 days. LSMGO still remains out of stock, a trader says. Bunker demand is said to be normal.

Bunker deliveries in Indian ports of Visakhapatnam and Kakinada were suspended on Tuesday morning due to Cyclone Asani.
In Colombo, availability is slightly tight across all grades. A supplier has run out of LSMGO, while VLSFO is in better stock. Another supplier can offer both grades, but prompt deliveries are made difficult by a busy barge schedule, sources say.
HSFO is tight due to lack of product availability in Colombo. A supplier expects a replenishment cargo to arrive next week, a source says.

Middle East
In Fujairah, prompt deliveries are slightly difficult to find, a trader says. Recommended lead times for VLSFO and LSMGO are around seven days.

HSFO remains tight in Fujairah, as in many other key regional ports. Recommended lead times are up to two weeks, with more prompt deliveries incurring higher price premiums, sources say.
Bunker fuel availability is normal in the Omani ports of Duqm and Sohar, where a supplier can offer prompt deliveries, sources say.
Source: ENGINE (https://engine.online/)

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