Singapore
Singapore has been witnessing robust VLSFO demand lately, which has contributed to tighten availability of the grade in the port, with lead times now stretching to almost two weeks ahead. Recommended lead times for HSFO are shorter at 7-9 days, and shortest for LSMGO at 5-7 days.
Residual fuel oil stocks in Singapore have averaged 5% lower so far in November than in October, according to Enterprise Singapore. This has brought the stocks further below their five-year average position for the time of the year. The stock draw has come despite a 13% increase in net imports this month, and could be a sign of strong demand for fuel oil.
East Asia
Bunker operations in Zhoushan’s outer port limits have been suspended amid bad weather since Sunday, putting a strain on the port’s supply capacity. Bunkering might resume on 2 December, when calmer weather is forecast, a source says.
The port had been pricing VLSFO at elevated levels to other major Asian hubs since the beginning of November, but its price recently flipped to a discount to Singapore. The Chinese bunkering hub has been seeing sluggish bunker demand of late, a source says.
Recommended lead times for both VLSFO and LSMGO in Zhoushan are 2-3 days, and a longer seven days are advised for HSFO.
Weather-induced disruptions continue to hamper bunker operations across the southern ports of South Korea, sources say. Recommended lead times for all grades for both southern and western South Korean ports are 4-5 days, but the deliveries in the southern ports might be delayed due to bad weather.
Availability remains okay across all grades in Hong Kong with lead times of seven days. Some suppliers have been grappling with tight barge schedules, a source says.
South Asia
VLSFO availability in India’s Mumbai remains steady with lead times of 2-3 days advised.
Availability of VLSFO is good in Mundra on India’s northwest coast and requires lead times of 2-3 days. Recommended lead times for VLSFO delivery in Kandla are 2-3 days.
While VLSFO availability is good in Cochin and Chennai on India’s southern coast, VLSFO availability is subject to inquiry in nearby Tuticorin.
Lead times of 2-3 days for VLSFO are recommended in Visakhapatnam on the east coast.
Suppliers in Paradip on India’s east coast have almost run out of VLSFO. VLSFO can be delivered in Haldia with recommended lead times of 2-3 days.
Availability across all grades remains good in the Sri Lankan port of Colombo with lead times of six days recommend.
Middle East
Suppliers in Fujairah continue to grapple with weak demand so far this month. A source says that most suppliers and buyers are holding back transactions until the G7 price cap on Russian oil comes into effect to answer more questions around future supply-demand dynamics. This has contributed to weaken in the Fujairah bunker market.
Recommended lead times for both VLSFO and LSMGO in Fujairah are similar at around nine days, and HSFO requires shorter lead times of seven days.
LSMGO remains readily available in the Omani ports of Duqm and Sohar, with short lead times of around two days possible.
Source: ENGINE, By Tuhin Roy, (https://engine.online/)