The fuel supply situation in the oil markets of Singapore and Malaysia is significantly affected by average demand and inventory shortages. In Singapore, the estimated delivery times for VLSFO (Very Low Sulfur Fuel Oil) are about 10 to 15 days remaining, which has not changed from last week. Most suppliers are operating with low inventories, and delays in cargo arrivals due to ongoing conflicts in the Middle East have exacerbated existing problems.
Fuel Supply Situation in Malaysia
In Port Klang, Malaysia, the fuel supply situation for several grades, including VLSFO and LSMGO (Low Sulfur Marine Gas Oil), remains limited. Immediate supply of VLSFO is facing severe shortages, and LSMGO inventory is also limited. Additionally, HSFO (High Sulfur Fuel Oil) is under supply pressure.
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Developments in East Asian Markets
In East Asia, the fuel market in Zhoushan, China, is also facing inventory shortages despite low demand. Delivery times for VLSFO have decreased to about 12 days, while delivery times for LSMGO have increased to 12 days. In other ports such as Tianjin, the supply situation for all three main fuel grades is under severe pressure. In the Port of Shanghai, VLSFO and HSFO inventories are limited, while LSMGO supply remains relatively stable.
Fuel supply in the southern Chinese ports, including Fuzhou and Xiamen, is also facing shortages of VLSFO and LSMGO. In these ports, the inventory of both grades is severely limited, and this situation is expected to continue for a short period.
Impact of Holidays and Weather Conditions
Activities in bunkering at several Chinese ports have decreased due to the National Golden Week holiday from October 1 to 7. In most ports, the last day for placing orders for delivery during the holiday was September 28. The bunkering market in Hong Kong has remained largely unchanged, with suppliers announcing delivery times of about seven days for the main grades.
In Taiwan, delivery times for VLSFO and LSMGO at the ports of Keelung, Hualien, Taichung, and Kaohsiung have decreased to two days. In South Korea, the fuel supply situation has improved, with delivery times in southern ports reduced to about 4 to 6 days.
Market Situation in Japan and Indonesia
The bunkering market in Japan is facing severe shortages. Ongoing repairs at refineries and prioritization of domestic electricity production have significantly reduced the allocation of cargoes to the bunkering market. Bunkering prices in Tokyo remain high compared to regional options, and inventories in several Japanese ports are severely limited.
In Indonesia, the fuel supply situation is generally healthy, with suppliers in Jakarta, Surabaya, Balikpapan, and Cigading announcing VLSFO delivery times of about 2 to 3 days.
The bunkering situation in Australia is also generally stable. In Western Australia, VLSFO supply is readily available in the ports of Kwinana and Fremantle, with delivery times reported at around seven days. In Eastern Australia, supply conditions have been more varied, and in the Port of Sydney, VLSFO and LSMGO inventories are adequate.
However, adverse weather conditions could disrupt bunkering operations in the coming days and pose new risks for bunkering operations.
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