Multiple Hours | ENGINE: Prospects for Bunker Fuel Availability East of Suez

The following article regarding the regional bunker fuel availability outlook for the East Suez region has been provided by the marine fuels supply platform ENGINE for publication on the Singapore bunker publication Manifold Times:

March 22, 2022

  • Fast fuel still tight in Singapore and Fujairah
  • Bad weather causes suspension and delays in Zhoushan
  • HSFO availability tight in Hong Kong

HSFO and VLSFO grades remain tight in Singapore compared to LSMGO. Recommended delivery times for HSFO and VLSFO are around 8-10 days and LSMGO is around 4-6 days.

Singapore’s residual fuel oil stocks have piled up for three weeks despite a sharp drop in net imports, according to data from Enterprise Singapore.

The port’s middle distillate inventories, which include gas oil and other products, fell further during the week and remain at their lowest level in five years.

Delivery times for VLSFO and LSMGO to Fujairah are generally stable over the week up to seven days, while HSFO delivery times are around 10 days.

Fujairah suppliers are still shunning some offers for larger rod sizes due to market volatility, sources say.

Bunkering operations resumed for a short period in Zhoushan earlier this week, before being suspended again due to deteriorating weather conditions, sources said. Demand has been weak in recent weeks at the Chinese port.

Recommended lead times in Zhoushan for VLSFO and LSMGO are around 4-5 days, while HSFO is tighter as only two suppliers can deliver the quality. Bad weather is expected again from Friday, which could trigger further suspensions and delay bunkering through the weekend.

China has eased lockdown restrictions in some areas of Shenzhen. Ports in the Shenzhen area imposed strict Covid-19 testing protocols and closed some warehouses last week. Those warehouses have now reopened, according to freight forwarder SEKO Logistics.

In Hong Kong, the availability of HSFO is more restricted than that of VLSFO and LSMGO.

The South Korean ports of Busan, Ulsan and Yeosu continue to see fast and tight availability. Suggested lead times for all grades of fuel in these ports are 9-10 days.

Fuel availability is limited in Port Klang in Malaysia, but some suppliers may offer limited fast deliveries, sources say.

Indonesia’s state-owned oil company Pertamina plans to start offering fuel supplies on Nipa Island, near Singapore. The company intends to offer 0.50% of MGO, LSMGO and VLSFO on the site.

The availability of bunker oil is normal at the Indian port of Mundra, sources say. Recommended delivery times are approximately 6-7 days for all grades.

Availability remains limited at Port Suez due to low production at a local refinery, sources say.

Photo credit and source: ENGINE
Posted: March 23, 2022

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