East of Suez Fuel Availability Outlook 26 May

Bunker availability tight in Singapore

Bunker supply tight in several Japanese ports

Availability tight across all grades in Fujairah

IMAGE: Aerial footage of a shipping terminal in the port of Singapore. Getty Images

Singapore and Malaysia

Bunker fuel availability in Singapore remains tight, with limited suppliers offering small HSFO parcels, with an expected premium for quantities of 500 mt and below.

VLSFO availability in Singapore is very tight, with delivery lead times increasing to 13-18 days, from 10-14 days last week. Lead times for LSMGO now stand at 10-12 days, compared to 5-10 days previously, while HSFO lead times stand at 9-11 days, up from last week’s 5-10 days.

Singapore’s residual fuel oil stocks have averaged 6% lower so far in May than across April, according to the latest data from Enterprise Singapore.

Fuel oil inventories have slipped below 21 million bbls this month, amid a 5% drop in the port’s net fuel oil imports. Exports have declined by 20,000 bbls, while imports fell more sharply by 97,000 bbls. The port’s middle distillate inventories have also declined by 370,000 bbls to 9.82 million bbls so far this month.

At Port Klang in Malaysia, VLSFO supply remains relatively stable, particularly for smaller prompt volumes. Procuring both LSMGO and HSFO has become more difficult as availability for both grades remains severely constrained.

East Asia

In Zhoushan, few suppliers are facing bunker delivery backlogs due weather-related issues. Cargo loading and supply is expected to face some delays due to dense fog.  

Overall prompt fuel availability in Zhoushan is moderately tight. Recommended lead times for VLSFO is at around 5-7 days, while HSFO and LSMGO require about 4-6 days.

Supply conditions across northern China remain mixed. Dalian and Qingdao have sufficient stocks of VLSFO and LSMGO. In Tianjin, bunker supply is tight across all fuel grades. Shanghai is facing some tightness in VLSFO and HSFO availability, while LSMGO supply remains comparatively stable.

Further south, availability of both VLSFO and LSMGO remains limited in Fuzhou. Xiamen has adequate VLSFO stocks but tighter LSMGO. In Yangpu and Guangzhou, both grades continue to face supply constraints across all grades.

In Hong Kong, bunker availability remains tight, with lead times for all grades holding at around seven days in recent weeks.

Taiwan’s bunker market also remains steady, according to a source. Lead times are around two days for both VLSFO and LSMGO in Kaohsiung, Taichung and Hualien and Keelung.

In South Korea’s southern ports - Busan, Ulsan, Masan, Onsan, Yeosu and Kwangyang - recommended lead times for both VLSFO and LSMGO have shortened to around 3-6 days. HSFO availability on the southern coast remains tight, with lead times of around 4-13 days.

Across western South Korean ports such as Incheon, Daesan, Dangjin, Pyeongtaek and Taean, lead times for VLSFO and LSMGO are at around five days – the same as last week. HSFO availability remains tight and is now largely being offered only on an enquiry basis.

In Japan, the bunker market remains under intense pressure amid the ongoing Middle East crisis. Major Japanese refiners have sharply reduced spot bunker supply for ocean-going vessels to prioritise domestic demand.

“The Japanese bunker market is currently navigating a highly complex environment, characterized by a fragile balance between severe supply constraints and rapidly shifting demand dynamics,” a trader said.

VLSFO and HSFO supply remains tight in the Tokyo Bay region, where stems of 200-500 mt are only available. In western Japanese ports like Osaka, supply conditions remain critically tight, with almost no spot bunker availability following refinery output cuts.

“Spot availability in Osaka and further south/west is virtually non-existent, and buyers will face extreme difficulty securing stems due to the ongoing fundamental refinery cuts,” the trader added.

LSMGO supply is extremely limited across the country. A domestic gasoil shortage has resulted in an almost complete absence of LSMGO offers, according to the Japan-based trader.

Recommended lead times at Tokyo, Chiba, Kawasaki, Nagoya, and Yokkaichi are 7-10 days for HSFO and 10-12 days for VLSFO. Availability at Osaka, Kobe, Kashima, Mizushima, Tokuyama, and Oita remains limited, with both grades offered only upon request.

Oceania

In Kwinana and Fremantle, Western Australia, VLSFO requires roughly one week of lead time, with barge deliveries managed by a single supplier.

Supply conditions on Australia’s east coast vary by region: Port Kembla supports VLSFO deliveries via truck or pipeline, while Sydney has healthy VLSFO and LSMGO stocks. However, HSFO remains tight, typically requiring a seven-day lead time.

In Queensland’s Brisbane and Gladstone, suppliers currently offer VLSFO and LSMGO with about seven-day lead times, while HSFO in Brisbane is available only by request.

In Victoria, Melbourne and Geelong report stable VLSFO inventories, though HSFO remains scarce for immediate delivery.

New Zealand’s bunker market is stable, with VLSFO easily accessible in Tauranga and Auckland on four days' notice.

South Asia

VLSFO supplies in India are constrained, with sources recommending 8-9 days of lead time for Kandla and Sikka. Mundra's LSMGO availability is currently restricted to firm inquiries only.

Requirements are more manageable elsewhere, with 5-6 days needed for Cochin and a brief 2-3 days for Hazira.

Sri Lanka maintains robust bunker supplies; both Colombo and Hambantota hold ample stocks of all fuel grades, with prompt delivery available within approximately three days.

Middle East

In Fujairah, bunker availability remains extremely tight, with all offers subject to firm enquiry. Fuel demand has cratered as vessels idle while awaiting passage through the Strait of Hormuz, with some suppliers reporting empty inventories due to a near-total cessation of imports.

In Kuwait, both Shuaiba and Shuwaikh continue to operate normally. VLSFO availability in Saudi Arabia’s Jeddah remains tight while LSMGO supply is stable.

In Qatar, both VLSFO and LSMGO availability remain tight in Ras Laffan. VLSFO supply is only happening via barge at Ras Laffan anchorage. Prompt LSMGO and VLSFO availability remains tight across Omani port of Duqm.

Egypt’s Port Suez is seeing VLSFO inventories near depletion, with LSMGO and HSFO also facing tight supply. Similarly, Djibouti reports persistent shortages across both VLSFO and LSMGO grades.

By Aparupa Mazumder

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