The bunker fuel supply in Singapore is clearly affected by resource shortages and increased delivery times. Currently, bunker fuel supply for immediate dates across all three types of fuel, including VLSFO (Very Low Sulfur Fuel Oil), HSFO (High Sulfur Fuel Oil), and LSMGO (Low Sulfur Marine Gas Oil) is facing serious limitations. In particular, VLSFO is expected to face shortages in the near future.
Increased Fuel Delivery Times
Fuel suppliers in Singapore are advising customers to order VLSFO at least 13 to 17 days before their needs, which is an increase from last week (13 to 15 days). For HSFO, the delivery time is between 12 to 16 days, and for LSMGO, the delivery time has decreased to about 7 to 10 days. This is while the delivery times for the shortest fuels have extended since late September when VLSFO and HSFO could be reserved 10 days before the required date and LSMGO was available in about 5 days.
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Bunker Fuel Reserve Situation
Bunker fuel reserves in Singapore averaged 18.56 million barrels in October, down from 24.13 million barrels last year. This decrease occurs despite an increase in net bunker fuel imports compared to last year, which stood at 3.80 million barrels in October. In the first week of November, reserves increased to 19.14 million barrels. Venezuela (20%), Russia (15%), and Kuwait (14%) have been recognized as the main suppliers of bunker fuel this month. Additionally, Port Klang in Malaysia is facing serious limitations in HSFO supply.
Fuel Supply Situation in the Middle East
In the Middle East, bunker fuel supply at the Port of Fujairah is also facing challenges. Fuel reserves at this port have remained stable at around 4.5 million barrels in September and October, while these reserves fluctuated between 3.45 million and 5.54 million barrels during the summer. Fujairah has consistently exported more bunker fuel than its import volume since June, with Singapore accounting for 46% of the port's exports in October.
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