- Singapore Bunker Fuel Sales Decline for Second Month in September.
- High-Sulphur Fuel Oil Demand Remains Strong Despite Monthly Dip.
- Marine Gasoil Sales Rise Amid Narrow Fuel Oil-Gasoil Price Spread.
On Oct 14 Reuters Marine bunker fuel sales at Singapore, the world’s largest vessel refuelling hub, declined for the second consecutive month in September, while marine biofuel sales reached an all-time high, the Maritime and Port Authority of Singapore said on Monday in releasing the bunker sales data, reports XM.
Bunker Sales Overview
In September, total bunker fuel sales amounted to 4.39 million metric tons, reflecting a 4% decline from August. However, sales were up by 3% compared to the same period last year.
The month-on-month decline was primarily driven by lower sales of low-sulphur fuel oil (LSFO), the primary grade of bunker fuel. LSFO sales totalled 2.25 million tons, as spot demand dropped due to tight prompt supplies that led to higher premiums throughout much of September.
High-Sulphur Fuel Oil (HSFO) Performance
While high-sulphur fuel oil (HSFO) sales also dipped month-on-month to 1.64 million tons, the year-on-year performance was significantly stronger. The demand for HSFO surged this year as more vessels equipped with scrubbers came online, allowing shipowners to benefit from the lower costs of high-sulphur fuel relative to low-sulphur alternatives.
Marine Gasoil (MGO) Uptake
In contrast to the overall decline in residual fuel sales, marine gas oil (MGO) volumes increased in September. The uptick was driven by a narrower price differential between gas oil and fuel oil, encouraging more shipowners to opt for MGO.
Record Marine Biofuel Sales
Marine biofuel sales reached an all-time high, surpassing 100,000 tons per month for the first time. The rise was attributed to higher term volumes lifted by a European shipowner, coupled with stronger spot demand due to competitive offers, according to market sources.
Liquefied Natural Gas (LNG) Volumes Decline
Despite the surge in biofuel sales, liquefied natural gas (LNG) bunker sales lagged behind, with monthly volumes falling below 40,000 tons in September, reflecting a month-on-month dip.
Vessel and Container Traffic
Total vessel calls for bunkering in Singapore dropped by 7.6% in September, totalling 3,267 calls. Additionally, container throughput fell by 8.7% to 3.29 million twenty-foot equivalent units (TEUs) during the same period.
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Source: XM
