East of Suez Bunker Fuel Availability Outlook

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• Singapore fuel oil inventories bounce back to five-month highs
• Zhoushan continues to offer prompt deliveries
• VLSFO availability gets tighter in Fujairah

Singapore’s net fuel oil imports soared by 6.21 million bbls in the week to 16 February, boosting the port’s fuel oil inventories to five-month highs last week, according to Enterprise Singapore data.

The majority of imports arrived from South Korea, Lithuania and Mexico in the week.

VLSFO and LSMGO stem

Availability of all fuel grades remains tight for prompt delivery dates in Singapore, but recommended lead times have shortened by 1-2 days for VLSFO and LSMGO stems. VLSFO now requires around 7-8 days of lead time, LSMGO 4-6 days and HSFO380 still at least 10 days.

Fuel availability has improved substantially in Hong Kong from last month, sources say. Recommended lead times are around 5-7 days now.

VLSFO cargo

However, suppliers are still offering on a case-to-case basis amid fears of fuel with potential off-spec origin, adds a source. An alleged off-spec VLSFO cargo was discovered in the port in January and contributed to tighten supply.

Zhoushan has been pricing VLSFO at sustained discounts to Fujairah and Singapore in recent weeks amid readily available supplies and low demand, sources say.

VLSFO and LSMGO grades are available for prompt deliveries, while HSFO380 is tighter and requires about 5-7 days of lead time.

Bad weather in Fujairah delayed bunker operation on Tuesday. Suppliers were still carrying out bunker deliveries, but barge schedules were slightly delayed, sources say.

VLSFO availability continues to be tight for larger stem sizes in the port. Recommended lead times are now around 6-8 days, up from last week’s 5-6 days.

VLSFO availability in South Korean ports is mostly unchanged from last week, with lead times ranging between 6-8 days in the country’s southern ports of Busan, Ulsan and Yeosu.

In Port Suez, availability continues to be tight for LSMGO and VLSFO. Some suppliers can offer the grades for prompt deliveries, but at steep premiums, sources say. Recommended lead times are around 6-7 days.

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Source: ENGINE

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