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ENGINE: Global Fuel Availability Outlook

Singapore’s bunker market has tightened significantly this week, after workers tested positive for Covid-19 at Universal Terminal which has delayed barge loading schedules. The terminal is currently short staffed, with the number of barges queued up increasing.

As a result, VLSFO supply has become more difficult for prompt dates as there is less available product in the market. Lead times have gone up from eight days to 10-11 days for the low sulphur fuel grade.

HSFO380 has also tightened in the bunkering hub with lead times stretching to 12 days ahead, while LSMGO is more readily available with 5-7 days ahead.

At the same time, Fujairah’s bunker market is still congested after tropical storm Shaheen lashed the area with strong winds last week. Suppliers can deliver from 20 October onwards as loading schedules are very tight in terminals.

Supply of all three fuel grades continues to be difficult with HSFO380 being particularly tight in the port with lead times at eight days ahead. VLSFO and LSMGO are slightly more readily available at six days ahead. LSMGO has recently dried up in the UAE bunkering hub as, with only a few suppliers having available product.

Fujairah’s fuel oil stocks dropped by 13% to 7.083 million bbls on the week to 11 October, data from the Fujairah Oil Industry Zone (FOIZ) and S&P Global Platts showed yesterday.

Gibraltar’s fuel oil supply has recently tightened as well, momentarily lifting the port’s VLSFO price above regional ports on Wednesday. A bunker supplier has run out of all three fuel oil grades in Gibraltar Strait ports. Lead times vary greatly from seven to a high of 17 days among suppliers and ports in the Straits now.

Bunker fuels remain ample for all three grades in ARA ports, without any supply shortage issues. Three days are still recommended for HSFO380 in the region to ensure timely supply, while low sulphur fuel oils could be procured at shorter notice.

Bunkering operations resumed in Zhoushan and Ningbo on Tuesday, after being suspended for two days due to Typhoon Lionrock. Congestion has built up in Zhoushan, with most suppliers able to accommodate stems from 19 October onwards.

At the same time, Hong Kong was hit by Typhoon Kompasu, the second bout of rough weather in the port in the past week. Some bunker suppliers stopped offering on Wednesday due to the weather conditions, while others were offering subject to weather conditions.

Fuel availability has tightened significantly in Panamanian ports, with Cristobal dried out of all three fuel grades without any indication of replenishment soon. Balboa seems to be better supplied but with bouts of tightness seen across the market, sources say.
Source: ENGINE (https://engine.online/)

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