Singapore marine fuel sales down for second month in Sept., though biofuels climb
- HSFO volumes still strong on year-on-year basis
- Strong month for MGO sales on narrow gasoil/fuel oil spread
- Biofuel sales breach 100,000 t/mos for first time
Sales of marine bunker fuel at Singapore eased for a second consecutive month in September, though marine biofuel sales surged to a fresh record high, data from the Maritime and Port Authority of Singapore showed on Monday.
Bunker sales at the world's largest vessel refueling hub totaled 4.39 MM tonnes in September, sliding 4% from August though climbing 3% from the same period last year, the data showed.
The monthly decline was led by lower volumes for the mainstay low-sulfur fuel grade, which totaled 2.25 MMt, as spot demand slowed amid strong premiums arising from tight prompt supplies for most of September.
High-sulfur bunker sales also fell month-on-month to 1.64 MMt, but remained much stronger compared to the same period last year.
Demand for high-sulfur bunker fuel firmed this year as more ships with scrubbers came online, while shipowners took advantage of the cheaper prices versus low-sulfur bunkers.
Marine gasoil sales trended higher in contrast to residual fuel volumes, as a much narrower price spread between gasoil and fuel oil in September drove higher uptake.
Meanwhile, biofuel sales rose to a fresh record high, breaching 100,000 t/mos for the first time ever.
Higher term volumes lifted by a European shipowner have driven volumes up in September, though spot demand also picked up in September due to competitive offers, market sources said.
As for liquefied natural gas (LNG), volumes still paled in comparison with biofuels, with monthly sales dipping month-on-month to below 40,000 t.
Total vessel calls for bunkering at Singapore fell 7.6% from August to 3,267 calls in September, while container throughput fell 8.7% to 3.29 million twenty-foot equivalent units (TEUs).
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