Singapore marine fuel sales climbs to a 2-yr high in January
Marine fuel sales in Singapore climbed to a two-year high in January, lifted by stronger vessel arrivals at the world's top bunkering since the start of 2023. Sales reached 4.38 MMt in January, climbing 4% month-on-month and 9% year-on-year, data from Singapore's Maritime and Port Authority showed. Firmer sales came in line with higher vessel arrivals for bunkering.
Vessel calls at Singapore rose to a 21-month high of 3,447 in January. "A higher number of container, bulk carrier and oil tanker arrivals in Singapore last month supported bunker sales," said Ivan Mathews, head of FGE's Asia Refining and Global Fuel Oil Service. Sales of low-sulfur marine fuel oil and high-sulfur marine fuel oil climbed 9% year-on-year in January, to 2.80 MMt and 1.23 MMt, respectively. Marine gasoil sales in January fell 7% year-on-year to 324,500 t, but were up 6% from December, the data showed.
However, demand has softened in February, several trade sources told Reuters, as some shippers held out for more competitive bunkering prices. "January demand was still alright but February's demand is markedly weaker," said a bunker fuel trader based in Singapore, adding that delivered bunker fuel premiums have been falling faster than cargo premiums. Cargo premiums for 0.5% very low sulfur fuel oil have eased from the high $20s/t at the start of February, to the low $20s last week.
In contrast, high sulfur fuel oil demand for bunkers could retain support as more scrubber-installed vessels come online. "The high-sulfur market will continue to be pressured by the ongoing deluge of Russian arrivals but the downside will be limited by rising demand for 380-cst bunkers as more scrubber-fitted ships enter the market," said Emril Jamil, Refinitiv's senior analyst for fuel oil. February's Singapore 380-cst bunker sales is forecast at 1.29 million tonnes based on the arrival of scrubber-fitted vessels, Refinitv Oil Research said.
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