ENGINE: East of Suez Bunker Fuel Availability Outlook

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• Singapore stocks rise on net import surge
• Zhoushan continues to see muted demand
• Fuel oil grades tight in Fujairah

Availability varies between fuel grades in Singapore. Lead times of 7-10 days are recommended for VLSFO and HSFO380 grade, while LSMGO requires around 4-6 days.

Singapore’s residual fuel oil inventories climbed to three-week highs last week, boosted by a 158% net import increase, according to Enterprise Singapore data. Fuel oil mostly arrived from the UAE, Thailand, South Korea, Indonesia and Brazil in the week, according to Vortexa.

The port’s middle distillate stocks inched up to five-week highs, but remained close to recent multi-year lows.

Lead times for VLSFO and LSMGO in Fujairah are up to seven days out, while HSFO380 lead times are about 10 days out.

Suppliers in Fujairah typically source gasoil and other products loaded from Russian Black Sea ports. These cargo flows have been disrupted by ongoing war in Ukraine and limited access to gasoil and blend stocks.Cargoes have been difficult to secure, a source says.

Fujairah total oil product stocks were down 1.30 million bbls last week, with overall stocks down 6.8% in the week to 7 March, according to Fujairah Oil Industry Zone and S&P Global Platts data. The port’s light and middle distillate stocks dwindled on the week, while heavy residues posted a build.

In Zhoushan, bunker fuels are available for prompt delivery across fuel grades. Demand remains muted, says a source.

Bunkering could be suspended at anchorage in Zhoushan towards the end of the week as the port is forecast to experience gale-force gusts of up to 29-35 knots on Thursday and Friday, according to a weather forecast.

Chinese ports may see more congestion because of restrictions from the country’s zero Covid-policy. A pilot shortage has been observed in the port of Shanghai port as curbs on movement have been imposed due to a rise in Covid-19 cases, says a source.

Ports in the Shenzhen have seen more Covid-19 testing protocols introduced, potentially holding up port operations, according to freight forwarder SEKO Logistics.

Bunkering has been suspended in the Yangtze River port of Nantong, at Qingdao’s inner anchorage, at Lianyungang’s anchorage and the anchorage in Xiamen, the source adds.

HSFO380 availability is tight in Hong Kong.
Meanwhile, bunker fuel availability is tight across fuel grades in South Korea’s southern ports of Busan, Ulsan and Yeosu. Suggested lead times across fuel grades in these ports are 8-11 days out.

These ports may also witness gale-force gusts of up to 25-31 knots Thursday through Friday.

Bunker fuel availability in Japan’s Tokyo Bay area has become more limited as one refiner has stopped taking orders due to troubles at its refineries, says a source. Suggested lead times are up to 15 days out across fuel grades.

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Source: ENGINE

 

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