Suez Fuel: East Availability Update

Credit: maksym-kaharlytskyi-unsplash
  • Singapore is facing tight supplies of VLSFO and HSFO. 
  • Zhoushan has ample availability, particularly in weather-exposed areas. 
  • South Korean ports are also seeing an improvement in VLSFO availability.

Singapore: Tightening Demands and Import Surges

According to a source, Singapore has been experiencing average demand this week. Securing HSFO stems in the East Asian bunker hub has become more challenging, with recommended lead times increasing slightly from 9-13 days to 11-14 days. Strong bunker demand in the previous week, coupled with a decreasing HSFO net import surplus, may have contributed to this pressure. The availability of VLSFO is also tightening, as several suppliers now advise lead times of 7-11 days, up from 6-9 days the previous week. However, the availability of LSMGO remains good, with short lead times of 4-7 days recommended.

In terms of fuel stocks, Singapore’s total residual fuel oil stocks for this month have been on average 9% lower than in June, according to Enterprise Singapore. Net fuel oil imports have surged by two-thirds and are at their highest level in over a year. Both fuel oil imports and exports increased in July, with fuel oil imports rising by 75% and fuel oil exports doubling. Middle distillate stocks in Singapore have also averaged 3% lower this month compared to June.

Weather Disruptions in Asian Ports

Zhoushan Port in China has sufficient bunker availability despite slow demand and weather-related disruptions. Bunker deliveries have been suspended due to bad weather at certain anchorages, but operations are expected to resume soon. Typhoon Talim has affected terminal operations in Guangdong and Hainan provinces, potentially impacting bunker deliveries in Hong Kong. VLSFO availability has improved in South Korean ports, with shorter lead times. However, intermittent adverse weather conditions in various ports, including Thailand, Vietnam, and New Zealand, may cause potential delays to bunker operations.

South Asia: Bunker Fuel Availability and Weather Concerns 

Several Indian ports, such as Kandla, Cochin, and Chennai, have good availability of VLSFO and LSMGO with short lead times. However, in Mumbai, Visakhapatnam, and Paradip, supply is subject to availability. Tuticorin and Haldia ports still require inquiry for both grades. Rough weather is forecast in some Indian ports, potentially affecting bunker operations. Sri Lankan ports, Colombo and Trincomalee, have ample VLSFO and LSMGO availability, with prompt dates available despite the predicted adverse weather conditions.

Middle East: High Demand Puts Pressure 

In Fujairah, UAE, strong bunker demand has led to pressure on prompt availability for all bunker fuel grades, with recommended lead times of 5-7 days remaining unchanged from the previous week. While some suppliers can offer all grades for spot dates, this is subject to stem sizes. On the other hand, the availability of bunker fuel remains good in the UAE port of Khor Fakkan, with the lead times also unchanged at 5-7 days. In Omani ports such as Duqm, Sohar, Salalah, and Muscat, LSMGO (Low Sulfur Marine Gas Oil) remains readily available, and prompt dates are possible for deliveries.

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Source: Engine


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