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East of Suez bunker fuel availability outlook by ENGINE

HSFO380 availability has tightened considerably in Fujairah, while Singapore’s lead times for all fuel grades are unchanged from last week.

Singapore’s fuel oil inventories dropped by a further 5% last week to a seven-week low of 24.96 million bbls, according to Enterprise Singapore data.

Fuel oil exports bounced back by 77% to 1.36 million bbls last week, after dipping below 1 million bbls last week. At the same time, fuel oil imports were almost cut in half on the week, falling by 46% to 6.4 million bbls – the lowest level since early October last year.

Singapore has good availability of low sulphur fuels for another week, with lead times for VLSFO and LSMGO stems steady at 5-7 days and 3-4 days, respectively. Lead times for HSFO380 stems are longer still, at 10 days.

HSFO380 stems are in shorter supply in Fujairah this week, with lead times more than doubling, from four days last week to 10 days now. Bunker barges are not lifting HSFO380 frequently due to lower demand for the product in the port, resulting in longer lead times.
Fujairah’s lead times for VLSFO and LSMGO have gone up by a day, to seven days now.

Zhoushan and Shanghai continue to have good fuel availability and suppliers are able to accommodate prompt deliveries, with lead times remaining at three days.

Hong Kong has ample supply of low sulphur fuels, too, while HSFO380 availability is tighter. The port still has strict Covid-19 quarantine rules in place for vessels not handling cargo, which were introduced in July last year. As a result, its bunker demand has been significantly reduced in the past year.

In South Korea, VLSFO supply has tightened in the country’s southern ports with lead times stretching up to seven days this week, compared to five days last week. Bunker supply is tight in the country’s western ports as well, as resupply is limited to fewer sources.

Source: ENGINE (https://engine.online/)