The fuel supply situation in Singapore and Malaysia is currently under pressure. In Singapore, the fuel market, especially for VLSFO (Very Low Sulphur Fuel Oil), is facing shortages, and delivery times for this fuel have reached 13 to 17 days, remaining nearly stable compared to last week. This comes as most suppliers in Singapore have lower inventories, and delays caused by conflicts in the Middle East have added pressure on fuel supply.
Fuel Inventory Situation in Singapore
Fuel inventories in Singapore have increased by 7% so far this month compared to August, reaching over 20 million barrels. This increase is due to an 18% rise in fuel oil imports in September. However, during this period, both imports and exports have decreased, with imports down by 167,000 barrels and exports down by 643,000 barrels. Middle distillate fuel inventories have also increased by 3%, reaching 8.46 million barrels.
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Fuel Supply Situation in Malaysia and Other Parts of East Asia
In Port Klang, Malaysia, fuel supply remains limited, and the inventory situation for VLSFO is particularly under pressure. In China, in the city of Zhoushan, VLSFO delivery times remain around 10 days, while suppliers are facing inventory shortages. Supply conditions in other Chinese ports vary; in Dalian and Qingdao, there is sufficient inventory of VLSFO and LSMGO, but there is a shortage of HSFO in Qingdao.
In southern China, suppliers in the cities of Fuzhou and Xiamen are facing shortages of VLSFO and LSMGO. Additionally, bunkering activities at several Chinese ports are expected to decrease during the Mid-Autumn Festival from September 25 to 27. In Hong Kong, the gasoline market has not changed significantly, and suppliers have maintained delivery times at around 7 days.
In South Korea, delivery times for all major grades at southern ports have reached about 9 days. In Japan, recent operational issues have been resolved, but the September loading schedule is fully committed, and immediate supply is nearly exhausted. Suppliers are currently only accepting firm requests.
In Indonesia, the bunkering fuel supply situation is healthy and adequate, with suppliers in the cities of Jakarta, Surabaya, Balikpapan, and Cigading offering VLSFO delivery times of 2-3 days. In Australia, fuel supply in Western Australia is stable, and VLSFO is readily available at the ports of Kwinana and Fremantle.
Overall, the fuel supply situation in the Asia-Pacific region includes multiple challenges, particularly due to declining inventories and loading delays. In these circumstances, suppliers advise customers to proactively plan their needs.
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