Prompt VLSFO availability remains tight in Singapore with suggested lead times of up to 8-10 days. VLSFO availability is expected to tighten with less cargo inflows and boost price premiums of ex-wharf over cargo VLSFO going into February, sources say.
Singapore witnessed a 60% drop in net imports in the week to 19 January. That led fuel oil suppliers to tap more into their storage tanks and drew combined stocks by 5% to 21.20 million bbls, Enterprise Singapore data showed.
The port’s middle distillate stocks surged 19% higher in the most recent week, to a two-month high of 8.53 million bbls.
At least 10 days of lead times is advised for HSFO380 stems in Singapore, while lead times for LSMGO remain relatively shorter than for fuel oil grades, at 5-7 days.
VLSFO availability in Zhoushan is normal with up to two days of lead times. LSMGO and HSFO380 availability has tightened owing to shortage of supplies. One HSFO380 supplier expects cargo replenishment by 5 February at the earliest.
In South Korea, VLSFO availability is tight in the southern ports of Busan, Ulsan and Yeosu with suggested lead times of 10-11 days. Just one supplier currently has HSFO380 in South Korea.
VLSFO availability is tight in Hong Kong owing to an alleged off-specification issue with a supplier’s cargo coming in from Singapore, says a source. Another supplier has limited stocks. Availability is expected to remain tight until the second week of February.
Some suppliers will continue to supply bunkers in Zhoushan and Hong Kong during the Lunar New Year from 31 January to 4 February, but holiday price premiums are expected.
In Fujairah, HSFO380 availability has tightened with up to 11 days of lead time required, while lead times for VLSFO and LSMGO have increased to 10 days each. VLSFO has been tight in the port owing to shortage of blends.
Fujairah experienced bad weather last Friday with strong winds touching 40 knots. While bunkering was not officially suspended, suppliers found it difficult to make deliveries due to the weather, sources said.
Fujairah’s heavy distillate and fuel oil inventories rose by 8.4% to a 9.95 million bbls on 17 January, according to Fujairah Oil Industry Zone and S&P Global Platts data.
Source: ENGINE (https://engine.online/)