Sales of marine fuel reached a two-year high in Singapore in January as a result of more powerful vessel arrivals at the top bunkering location in the globe since the beginning of 2023, as reported by The Business Times.
More ships for bunkering
Sales increased 4% month over month and 9% year over year in January to reach 4.38 million tonnes, according to figures from Singapore’s Maritime and Port Authority.
Stronger sales coincided with more ships arriving for bunkering. In January, the number of ships calling in Singapore reached a 21-month high of 3,447.
Ivan Mathews, director of FGE’s Asia Refining and Global Fuel Oil Service, noted that last month saw an increase in the number of containers, bulk carriers, and oil tankers arriving in Singapore.
Affordable bunkering prices
In January, sales of low- and high-sulfur marine fuel oil increased 9% year over year to 2.80 million tonnes and 1.23 million tonnes, respectively.
Sales of marine gasoil were up 6% from December but were down 7% year over year in January to 324,500 tonnes, according to the data.
However, several shippers hung out for more affordable bunkering prices in February, according to numerous trade sources who spoke to Reuters.
A bunker fuel trader located in Singapore remarked, “January demand was still reasonable, but February’s demand is noticeably worse,” adding that delivered bunker fuel rates have been declining more quickly than cargo premiums.
Increased demands
Cargo premiums for fuel oil with a 0.5% extremely low sulphur content have decreased from highs of US$20 per tonne at the beginning of February to lows of US$20 last week.
In contrast, as additional ships with scrubbers installed come online, the need for high-sulphur fuel oil for bunkers may continue to grow.
According to Emril Jamil, senior analyst for fuel oil at Refinitiv, “the high-sulfur market will continue to be under pressure from the continued flood of Russian arrivals, but the downside will be capped by increased demand for 380-cst bunkers as more scrubber-fitted ships reach the market.”
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Source: Business Times
