ENGINE: East of Suez Bunker Fuel Availability Outlook
Singapore’s VLSFO and HSFO grades remain in tight availability, with recommended lead times stretching 10-11 days ahead. LSMGO is more readily available with lead times of just 1-2 days.
Singapore’s fuel oil stock levels have averaged 19.68 million bbls in the first two weeks of September, a 1% rise from their average across August, according to Enterprise Singapore.
The port’s middle distillate stocks have averaged 8.36 million bbls this month. This is up 8% from August and the highest monthly average since November last year.
Bunker operations have been suspended by rough weather in Zhoushan since Monday this week. Deliveries are expected to resume from Wednesday morning with calmer weather conditions.
Availability across all fuel grades remain tight in Zhoushan as most suppliers are running low on stocks.
VLSFO and LSMGO stems in Zhoushan have recommended lead times of about eight days for larger quantities, while a shorter three days for smaller quantities. Lead times vary between 5-7 days for HSFO.
Bunker operations are suspended across southern South Korean ports, including Busan, Yeosu, Onsan and Ulsan. Rough weather triggered by typhoon Nanmadol has kept bunkering suspended since Sunday. Bunkering is expected to resume from Wednesday morning, sources say.
Several recent weather-related disruptions in South Korea have pushed back lead times for all fuel grades to early October, sources say.
Availability is also getting tight for all grades in Hong Kong, where lead times of eight days are now advised.
Availability remains good across all grades in India’s Mumbai with lead times of 6-7 days.
Recommended lead times for HSFO and VLSFO in Mundra on India’s northwest coast are eight days.
Availability remains tight in Visakhapatnam on India’s east coast. Suppliers expect VLSFO supply to be boosted with incoming cargo replenishments over the coming days.
One supplier has started offering HSFO in Visakhapatnam and intends to supply vessels with barges in the nearby ports of Kakinada, Gangavaram, Krishnapatnam and Odisha on India’s east coast as well.
Recommended lead times for VLSFO in Fujairah are eight days, and nine days for HSFO. LSMGO has a shorter six days.
According to data compiled by Fujairah Oil Industry Zone (FOIZ) and S&P Global Commodity Insights, a spike in HSFO and VLSFO sales pushed Fujairah’s total bunker sales up by 9% in August over July levels. HSFO sales surged 27% higher on the month.
A supplier can offer VLSFO and LSMGO for prompt dates in Oman’s Sohar, while LSMGO availability is tight in Duqm.
Source: ENGINE, By Tuhin Roy and Nithin Chandran (https://engine.online/)