Singapore
VLSFO and HSFO supply is “super tight” for prompt dates in Singapore. Some suppliers are fully booked for VLSFO deliveries until early August, while some can offer VLSFO from 6 August.
Similarly, many suppliers can offer HSFO for deliveries from 9 August onwards. A spike in demand for VLSFO and HSFO in recent days stretched recommended lead times for the two grades to around 12-15 days. LSMGO has a shorter recommended lead time of 8-10 days.
Despite tight VLSFO supply in Singapore, a series of lower-priced stems fixed in recent days have weighed on its benchmark.
The port’s VLSFO price has shed nearly $145/mt in the past week, while its HSFO price has held steady. VLSFO’s steeper decline has contributed to narrow the port’s Hi5 spread to $397/mt. It peaked above $570/mt last week.
East Asia
VLSFO and LSMGO availability is normal in China’s Zhoushan and Shanghai. A supplier in Zhoushan has received VLSFO cargo replenishments and can offer deliveries for prompt dates, sources say. Similarly, some suppliers in Shanghai can offer VLSFO for prompt dates. One supplier can deliver from 30 July onwards.
LSMGO remains readily available in both of these Chinese ports. HSFO is slightly tight for prompt dates as the product is available from only some suppliers. Bunker operations continue to operate smoothly in Zhoushan’s anchorages, according to shipping agent White Whale Shipping Agency.
Availability is normal across all grades in Hong Kong. A supplier has been offering LSMGO at steep discounts as it looks to clear remaining product on a barge before replenishment stocks arrive in the coming days, sources say. Recommended lead times are 3-5 days across all grades.
VLSFO availability remains normal in Indonesia’s Jakarta and Surabaya. Recommended lead times are around 3-5 days.
South Asia
Availability of VLSFO and LSMGO remains normal in India’s Mumbai. The grades are available with some suppliers for prompt dates, sources say.
Securing VLSFO and HSFO for prompt dates in Mundra on India’s northwest coast can be tricky. Recommended lead times for VLSFO are around 8-9 days. LSMGO remains out of stock.
VLSFO and LSMGO availability is normal in Sri Lanka’s Colombo. Recommended lead times are around 5-7 days. A supplier can offer limited prompt deliveries for VLSFO and LSMGO.
VLSFO availability is tight in Bangladesh’s Chittagong. Securing bunkers for both prompt and far out dates has become harder as some suppliers are out of stock, a trader says. Low imports has been cited as a reason for the grade being tight.
Middle East
VLSFO and LSMGO availability is tight for prompt dates in Fujairah. Some suppliers have limited LSMGO stocks. Recommended lead times for VLSFO and LSMGO are around nine days and a shorter 5-6 days for HSFO. A supplier can offer VLSFO from 2 August onwards, a trader says.
Fujairah’s middle distillate stocks were drawn by 25% last week, while heavy distillate and residual fuel oil stocks held above 12 million bbls, according to the latest data from Fujairah Oil Industry Zone (FOIZ) and S&P Global.
Availability of VLSFO and LSMGO is normal in the Omani ports of Duqm and Sohar.
Source: ENGINE (https://engine.online/)