Singapore marine fuel sales hit 22-month high in Nov

MARINE fuel sales at Singapore jumped to a 22-month high in November, latest official data showed on Tuesday (Dec 13) as lower prices lifted buying interest at the world’s largest bunkering hub.

November bunker sales totalled 4.37 million tonnes, climbing 3 per cent month-on-month and up 4 per cent year-on-year, data from Singapore’s Maritime and Port Authority showed.

The higher sales came despite lower vessel arrivals for bunkering at Singapore, which dipped by 4 per cent month-on-month at 3,299 vessel calls, although edged higher by 3 per cent year-on-year.

Marine fuel prices fell month-on-month in November and this had incentivised some shippers to agree deals for bigger-volume stems, bunker fuel traders said.

“Lower cargo prices might have incentivised some bigger purchases for storage as inventory on the ships’ tanks,” said a bunkering manager who trades in the Singapore marine fuel market.

Total sales of low-sulphur marine fuel oil at Singapore gained 6 per cent from the previous month to 2.75 million tonnes, even as total sales of high-sulphur marine fuel oil dipped 5 per cent to 1.25 million tonnes in November.

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“Vessels without scrubbers opportunistically increased bunker purchase volumes in the last month due to lower delivered prices,” said Ivan Mathews, head of FGE’s Asia Refining and Global Fuel Oil Service.

He added that low-sulphur marine fuel sales could extend its climb this month as prices at Singapore also appeared to be more competitive, compared with other regional ports like Zhoushan.

Bunker fuel prices for 0.5 per cent low-sulphur fuel oil on a delivered basis have trended lower in November after upstream crude oil prices fell. REUTERS