Sales of marine fuel, also known as bunker fuel, hit three-month highs in the world’s biggest refuelling hub Singapore in April, the latest official data showed, as prices were more competitive than regional ports.
Singapore’s bunker sales data are an indicator of sentiment at one of the world’s most major ports and demand also affects fuel oil refining margins in Asia.
Sales climbed for a second consecutive month to 4.25 million tonnes, up 2% month-on-month and 14% from a year earlier, Singapore’s Maritime and Port Authority data showed.
The rise reflected higher vessel calls for bunkering, which totalled 3,495 calls in April, extending gains after hitting two-year highs in March.
“Singapore VLSFO prices were more competitive versus Zhoushan in April, which led to more vessels bunkering in Singapore,” said Ivan Mathews, FGE’s head of Asia refining and global fuel oil.
“Prices continue to be cheaper than Zhoushan in May to-date, which should continue to support VLSFO sales in Singapore.”
Bunker prices for very low sulphur fuel oil (VLSFO) at Singapore were $5 to $20 lower than China’s Zhoushan in April and May so far, according to bunker traders.
Sales of LSFO grades totalled 2.71 million tonnes in April, up 5% month-on-month, the port authority data showed.
Meanwhile, sales of high sulphur fuel oil grades eased 4% from March to 1.19 million tonnes in April, though climbing 26% from the same month last year, while marine gasoil sales were slightly lower at 327,400 tonnes.
“Demand in April did pick up compared with February and March, it looks okay in May so far, but I am not sure if it will hold as fuel oil cargo premiums have eased,” said a senior bunker fuel trader based in Singapore.
Source: Hellenic Shipping News
