By Srinivas Chowdary Sunkara // petrobazaar // 16th May 2021.
FUEL OIL MARKETS (WEEK MAY 3 - MAY 7)
A combination of growing fuel oil and gas oil stocks and a slow down in bunker demand has shortened lead time in the bunkering hub. The lead time for HSFO stems have dropped to 10 days in Singapore, Down from 12 to 15 days two weeks ago. Singapore’s fuel oil inventories have jumped 11% to their highest level since March 2017 amid declining imports and muted demand. VLSFO stems now require booking six to eight days ahead down for more than 10 days a month ago. LSMGO is also readily available in the port with 45 days of lead time needed down from five to seven days a month ago. Fujairah tight to low sulfur fuel markets has eased slightly this week with lead times VLSFO and LSMGO stems dropping to five days. Lead times for HSFO have also come down by two days to eight days now. Shenzhen and Shanghai continue to have good availability for VLSFO and LSMGO with lead time standing at just 3 days. Availability for the fuel grade continues to be tight in South Korea’s southern ports this week. LSMGO bunker stems in Tokyo Bay are mostly unchanged on the week requiring up to 7 days ahead while supply of HSFO remains tight in Japanese ports. Growing low and high sulfur fuel oil stocks push Japan’s total fuel oil stocks up during the week. The fuel grade has been in tighter supply in the Canary Islands in the past few months after a supplier stopped replenishing its stocks. Bunker fuels are readily available for deliveries across major US bunker ports, Supported by steady inventory levels.
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