Singapore marine fuel sales at two-year high in Jan

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 million tonnes in January, climbing 4 per cent month-on-month and 9 per cent 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 containers, 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-sulphur marine fuel oil and high-sulphur marine fuel oil climbed 9 per cent year-on-year in January, to 2.80 million tonnes and 1.23 million tonnes respectively.

Marine gasoil sales in January fell 7 per cent year-on-year to 324,500 tonnes, but were up 6 per cent from December, the data showed.

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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 per cent very low sulphur fuel oil have eased from the high US$20s a tonne at the start of February, to the low US$20s last week.

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In contrast, high sulphur 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. REUTERS