The Singapore fuel market is facing supply challenges even as its demand has been reported to be below average. Proposed supply times for VLSFO (Very Low Sulfur Fuel Oil) are now estimated at around 10 to 15 days, down from 13 to 17 days last week. Most suppliers in Singapore have maintained low inventory levels, and delays in cargo arrivals due to Middle Eastern conflicts have put additional pressure on supply.
Fuel Supply Situation in Malaysia
In Port Klang, Malaysia, fuel supply is limited across several grades. In this port, the supply of VLSFO is particularly scarce, while the supply of LSMGO (Low Sulfur Marine Gas Oil) is limited and the supply of HSFO (High Sulfur Fuel Oil) is under pressure.
Supply Conditions in East Asia
In Zhoushan, China, fuel supply is also limited, and several suppliers are experiencing inventory shortages. Supply times for VLSFO and HSFO have increased to about 14 days. In other Chinese ports, supply conditions are unbalanced. In Tiran port, the supply of VLSFO and LSMGO is reported to be adequate, but HSFO inventory in Qingdao port is limited. In Tianjin port, shortages are evident across all grades, while Shanghai port also has restrictions on the supply of VLSFO and HSFO.
In southern China, suppliers in the ports of Fuzhou and Xiamen are facing shortages of VLSFO and LSMGO. Bunkering activities in several Chinese ports will decrease during the National Golden Week holiday from October 1 to 7. In Hong Kong, the fuel market has remained generally unchanged, with suppliers announcing supply times of around seven days.
In South Korea, supply times in southern ports such as Busan and Ulsan have increased to about 5 to 11 days. Additionally, weather disruptions are also expected to impact supply in the coming days.
In Japan, operational issues at one of the refineries have been resolved, but there is still no demand for VLSFO for loading in early October. Also, in Indonesia, fuel supply in cities like Jakarta and Surabaya remains healthy and is estimated at around 2 to 3 days.
In Australia, fuel supply in Western Australia is stable, but supply conditions on the eastern coast are unbalanced. In Kwinana and Fremantle ports, the supply of VLSFO is easily met, but in Sydney port, HSFO inventory is limited. Conditions may be affected due to the storm season starting in November.
