- Singapore stocks fall on net import drop in Dec
- HSFO380 availability improves some in Fujairah
- Prompt supply still possible in European hubs
- US fuel oil supply pressured by destocking
Fujairah’s heavy distillate and residual fuel oil stocks have been adding weight for two weeks, Fujairah Oil Industry Zone and S&P Global Platts data showed this week, reports ENGINE.
Singapore and Fujairah
VLSFO availability
VLSFO availability remains tight in Singapore with recommended lead times of up to 12-14 days. More limited cargo inflows have contributed to add pressure on fuel oil supply.
Fuel oil has been pulled out Singapore’s storage tanks through most of December amid a 30% drop in weekly average net imports from November.
Residual fuel oil stocks
The port’s residual fuel oil stocks – which include high- and low sulphur grades – have been drawn to less than 20 million bbls for the first time since September, according to Enterprise Singapore.
HSFO380 availability
HSFO380 still typically requires lead times of 10-12 days ahead in Singapore, partly as there are fewer suppliers offering it. LSMGO requires a shorter lead time of 5-6 days.
HSFO380 availability has improved some in Fujairah, with recommended lead times coming down from about two weeks last week, to eight days now.
Lower refinery production
Lower refinery production and more limited availability of blend stocks tightened supply last week. The UAE port’s lead times for VLSFO and LSMGO grades are similar at eight days.
Fujairah’s heavy distillate and residual fuel oil stocks have been adding weight for two weeks, Fujairah Oil Industry Zone and S&P Global Platts data showed this week.
High- and low sulphur fuel oil cargoes arrived from the ARA, Russian Black Sea, Iraq, India and other locations over the period, according to cargo tracking.
Europe
Prompt deliveries of all grades are possible in ARA and Gibraltar Strait ports, but delivery slots have been filling up for dates into early January, especially in Gibraltar, as buyers have been booking earlier than usual leading up to the holidays. Lead times of 3-5 days should be considered.
Independent fuel oil and gasoil stockpiles in the ARA have grown for a second week following heavy destocking earlier in December, Insights Global data shows. Russia continued to be the biggest source of fuel oil imports, according to cargo tracking.
US
US fuel oil inventories have been drawn to another all-time low after heavy destocking towards the end of the year to pay less ad valorem duties. East Coast inventories are especially light and slumped to fresh record lows, the latest Energy Information Administration (EIA) data shows.
West Coast stocks have hit three-week lows. Gulf Coast inventories added some weight in the most recent week, but have gradually been destocked since late November.
Bunker availability of HSFO380 is limited in New York, with several suppliers unable to offer for prompt dates. VLSFO has tightened for prompt dates.
HSFO380 and VLSFO grades are also tight West Coast ports like Los Angeles and Long Beach, in the Houston area, in offshore Gulf Coast locations, and in Panama which relies on US fuel oil exports for supply.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Engine
