East of Suez Fuel Availability Outlook 2 June

VLSFO supply tight in Zhoushan

Severe tropical storm Jangmi-induced bad weather might impact bunkering in Japan’s Kyushu region

Bunker supply extremely tight in Fujairah and Khor Fakkan

IMAGE: Aerial view of Saudi Arabian port of Jeddah with cargo ships and dry docks. Getty Images

Singapore and Malaysia

VLSFO availability in Singapore remains under pressure, with suppliers recommending lead times of 10-15 days, compared with 13-18 days a week ago. HSFO supply has tightened further, with lead times extending to around 10-15 days from 9-11 days previously. In contrast, LSMGO availability has improved, with recommended lead times easing to about seven days from 10-12 days last week.

Meanwhile, a biofuel supplier has indicated that it is not yet prepared to offer or deliver biofuels in Singapore. The supplier plans to begin onboarding once logistical arrangements have been finalised and it is close to launching supply operations, according to a source.

At Port Klang in Malaysia, VLSFO availability remains relatively steady, especially for smaller prompt stem requirements. However, supply conditions for LSMGO remain tight, while HSFO availability continues to be constrained, making both grades increasingly challenging to secure.

East Asia

VLSFO availability in Zhoushan remains under pressure as several suppliers continue to grapple with low inventories. The tightness has persisted for about a month, according to a trader, with recommended lead times unchanged at 7–10 days. Availability of LSMGO and HSFO has improved marginally, with lead times easing to 4–7 days from 5–8 days last week.

As May is typically marked by prolonged periods of dense fog in Zhoushan, which can disrupt cargo and bunker operations, a supplier has revised its bunker-only-call cancellation policy. Effective 26 May 2026, dense fog will no longer be classified as a force majeure event. The supplier will endeavour to arrange delivery upon a vessel’s arrival, but supply is not guaranteed. Cancellation fees may apply, while vessels opting to bypass Zhoushan can request replacement orders subject to mutual agreement, a source said.

Elsewhere in northern China, bunker supply conditions remain uneven. Dalian and Qingdao have ample VLSFO and LSMGO availability, although HSFO remains tight in Qingdao. Tianjin continues to experience supply constraints across all fuel grades. In Shanghai, VLSFO and HSFO availability is limited, while LSMGO supply remains relatively stable.

In southern China, both VLSFO and LSMGO availability remain restricted in Fuzhou. Xiamen has sufficient VLSFO stocks, but LSMGO supply is tighter. Yangpu and Guangzhou are also facing constraints across both grades.

Hong Kong’s bunker market remains largely stable, with lead times for all fuel grades holding at around seven days in recent weeks.

Taiwan’s bunker market is also steady, according to a local source. Recommended lead times for both VLSFO and LSMGO remain at about two days in Keelung, Hualien, Taichung and Kaohsiung, broadly unchanged from the previous week.

Bunker demand in South Korea has softened so far this week, according to a local trader.

Across the southern ports of Busan, Ulsan, Masan, Onsan, Yeosu and Kwangyang, recommended lead times for both VLSFO and LSMGO are around three days, compared with 3–6 days last week. HSFO availability has improved significantly, with lead times shortening to about three days from 4–13 days previously.

Supply conditions have also improved at western ports including Incheon, Daesan, Dangjin, Pyeongtaek and Taean. Lead times for VLSFO and LSMGO have eased slightly to around three days from five days last week. HSFO availability has improved as well, after being largely offered only on an enquiry basis last week.

However, weather-related disruptions continue to pose operational risks. Delays are forecast in Busan and Ulsan on 7 June, and in Yeosu between 6–8 June.

Japan’s bunker market, meanwhile, remains under severe pressure as major refiners continue to prioritise domestic fuel requirements, resulting in significant supply cuts to the marine sector. The tightness has pushed Japanese bunker prices to substantial premiums, prompting many ocean-going vessels to seek fuel in neighbouring hubs such as South Korea and China.

In Tokyo Bay and Nagoya, a sharp decline in vessel arrivals has led to a modest surplus of VLSFO and HSFO. Suppliers are occasionally offering spot stems of 200–500 mt, provided buyers accept prevailing regional premiums. While LSMGO remains critically tight nationwide due to a structural domestic gasoil shortage, limited availability has emerged in the Tokyo Bay and Nagoya areas. In most other regions, offers remain virtually absent.

Supply conditions remain especially tight in western Japan, where spot availability for fuel oil is almost non-existent, according to a Japan-based trader.

The recent reports of a US-Iran agreement and the expected reopening of the Strait of Hormuz have improved sentiment regarding Japan’s long-term fuel supply outlook. However, the trader noted that it could take several months for Middle Eastern supply flows and domestic distribution networks to fully normalise. Until then, current supply constraints and tight market conditions are likely to persist.

Recommended lead times are currently around 7–10 days for HSFO and 10–12 days for VLSFO across major ports including Tokyo, Chiba, Kawasaki, Nagoya and Yokkaichi. At Osaka, Kobe, Kashima, Mizushima, Tokuyama and Oita, both grades continue to be offered only on a case-by-case enquiry basis.

Weather conditions could add further pressure. Severe tropical storm Jangmi was moving north towards Japan’s southwestern main island of Kyushu on Tuesday after impacting Okinawa the previous day, according to the Japan Meteorological Agency.

The storm is currently approaching southwestern Japan (Kyushu region) and is expected to move past the Osaka area before nearing the Tokyo region around 3 June, which could disrupt bunkering operations in these regions, another source said.

In contrast, Indonesia’s bunker market remains relatively stable. VLSFO availability is steady in Jakarta, Surabaya, Balikpapan and Cigading, with recommended lead times of around three days.

Oceania

In Western Australia, VLSFO supply at Kwinana and Fremantle remains available with lead times of around one week. Deliveries are conducted by barge and currently rely on a single supplier.

Supply conditions on Australia’s east coast differ by location. In New South Wales, Port Kembla can receive VLSFO via truck or pipeline, while Sydney maintains adequate inventories of both VLSFO and LSMGO. HSFO availability in Sydney remains limited and typically requires lead times of about seven days.

In Queensland, suppliers in Brisbane and Gladstone are offering VLSFO and LSMGO with lead times of approximately seven days. HSFO in Brisbane is available only upon request.

Further south, Melbourne and Geelong continue to hold comfortable VLSFO stocks. However, prompt HSFO availability remains restricted. Bunker deliveries in both ports depend on a single barge, with recommended lead times of close to seven days.

One supplier advises lead times of around five days across all fuel grades in Brisbane, Sydney and Melbourne. Meanwhile, Dampier continues to rely on truck support for pipeline supply, making early booking and berth confirmation essential, according to a source.

New Zealand’s bunker market remains stable. VLSFO is readily available in Tauranga and Auckland, with recommended lead times of around four days. At Marsden Point, both VLSFO and LSMGO can be supplied directly to vessels through pipeline connections.

However, bunker operations across New Zealand remain vulnerable to weather conditions, particularly in Wellington and ports located on the South Island.

South Asia

Adverse weather conditions are forecast to disrupt operations at several Indian ports in the coming days. Potential delays are expected at Kandla and Sikka between 3–5 June, Cochin and Visakhapatnam between 2–6 June, and Mumbai between 4–6 June, which could impact bunker deliveries.

In Sri Lanka, bunker supply remains stable. Colombo and Hambantota continue to be well stocked across all fuel grades, with at least one supplier able to deliver within around five days, compared with three days previously.

Weather conditions could, however, affect bunker operations in Colombo and Trincomalee between 2–6 June.

Middle East

“Middle Eastern ports are currently operating with improved but still unstable conditions following the [partial] reopening of the Strait of Hormuz. Overall situation is better compared to the previous period, however availability remains limited in some locations,” a regional source said.

“Overall, the market is improving, but remains sensitive and subject to prompt changes in availability and pricing,” the source added.

Bunker availability in the UAE ports of Fujairah and Khor Fakkan has tightened significantly, with only a handful of suppliers currently offering fuel and many selectively responding to enquiries, according to a trader.

For VLSFO and LSMGO, only one supplier currently has stocks in Fujairah, with most offers issued on a firm enquiry basis. HSFO availability is slightly better, with two suppliers able to provide the grade.

In Khor Fakkan, availability remains constrained across all fuel grades, with suppliers largely assessing requests on a case-by-case basis.

The tight supply situation is primarily due to a lack of incoming cargoes, leaving barges without product to load. While fresh cargo arrivals were expected over the past two weeks, there is still no clear indication of when they will materialise.

Barges that had already loaded product continue to offer fuel until inventories are exhausted, though most of these volumes have already been sold. Suppliers warn that Fujairah and Khor Fakkan could run dry in the coming days if the expected cargoes fail to arrive and the remaining barge stocks are fully booked.

Even if replenishment cargoes arrive, bunker prices could continue to command premiums, the trader added.

Bunker availability in Dubai also remains constrained, with suppliers issuing offers only against firm enquiries. Elsewhere in the UAE, port operations at Jebel Ali, Hamriyah and Sharjah are proceeding normally, according to Inchcape Shipping. Ports in Ras Al Khaimah are also fully operational, although RAK Ports has maintained a marine risk surcharge for vessels calling at its ports, harbours and anchorages since March.

In Kuwait, both Shuaiba and Shuwaikh continue to operate without disruption.

Saudi Arabian ports have not issued any formal alerts. While VLSFO availability remains tight in Jeddah, LSMGO supply is relatively stable. However, adverse weather could disrupt bunker operations in Yanbu on 6 June.

In Qatar, the Ministry of Transport restored 24-hour maritime navigation for all vessel types at the beginning of May, according to Inchcape Shipping. Despite this, both VLSFO and LSMGO remain in short supply at Ras Laffan.

Oman continues to offer strong prompt LSMGO availability, with one supplier recommending lead times of just 1–2 days across its ports, including Duqm, Muscat, Sohar and Salalah.

In Bahrain, vessel movements have resumed, although port activities remain somewhat restricted under the current operating environment, according to Inchcape Shipping.

Egyptian ports are functioning normally. VLSFO inventories at Port Suez are close to exhaustion, while LSMGO and HSFO remain adequately stocked. Weather-related disruptions could affect bunker operations in Port Said on 3 June.

Djibouti port continues to face tight availability of both VLSFO and LSMGO. Meanwhile, port and bunker operations across Jordan, Iraq, Cyprus, Pakistan and Lebanon are proceeding as normal, according to Inchcape Shipping.

By Tuhin Roy

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