East of Suez Fuel Availability Outlook 24 Feb

Demand low in Zhoushan

Availability good in Hong Kong

Availability very tight across all grades in Fujairah

IMAGE: Illuminated Kaohsiung city and harbor at night, Taiwan. Getty Images


Singapore and Malaysia

In Singapore, VLSFO availability has improved marginally, with recommended lead times easing to 6–10 days, from 8–13 days last week. LSMGO lead times have also shortened, falling to 4–9 days from 8–12 days previously. HSFO now requires about 6–12 days, compared with 8–12 days last week.

The modest improvement stems from softer demand during the Chinese New Year holiday period, which has reduced supply pressure, a source said.

On the inventory front, Singapore’s residual fuel oil stocks have averaged 2% lower so far in February compared with January, according to Enterprise Singapore’s latest data. Total fuel oil inventories have dipped below 24 million bbls, amid a 13% drop in net fuel oil imports this month. Although imports have risen by 259,000 bbls, exports have increased more sharply, up by 680,000 bbls.

In contrast, the port’s middle distillate inventories have averaged 5% higher so far this month, reaching their highest level since November.

Elsewhere in the region, Port Klang reports generally adequate supply of VLSFO and LSMGO—particularly for smaller prompt stems—while HSFO availability remains tight and relatively harder to secure.

East Asia

Availability in Zhoushan has improved across all grades amid muted demand. Lead times for VLSFO and LSMGO have shortened to 3–5 days, compared with 7–10 days last week. HSFO now requires 5–7 days, down from 7–10 days previously.

In Hong Kong, bunker lead times remain steady at around seven days for all grades, broadly unchanged in recent weeks.

Taiwan’s lead times for VLSFO and LSMGO are also largely stable. Deliveries in Keelung and Hualien require about two days’ notice, while Kaohsiung and Taichung continue to advise slightly longer lead times of around three days.

In South Korea, several suppliers are recommending lead times of 3–8 days across all bunker grades, almost unchanged from 3–7 days last week.

In Japan, VLSFO availability remains ample at major ports including Tokyo, Chiba, Yokohama and Kawasaki. Supply is tighter in Nagoya, Yokkaichi, Mizushima and Tokuyama, where recommended lead times are holding at 7–10 days. LSMGO availability is generally steady nationwide, while B24-VLSFO can be supplied on request in Tokyo, Chiba and Yokohama.

HSFO stocks are broadly stable across several ports. Oita reports sufficient availability of all three grades, and Kashima has adequate volumes of both VLSFO and HSFO.

Bunkering activity in Japan is expected to slow on 20 March, due to the observance of Vernal Equinox Day.

Oceania

Bunker supply across Australia remains broadly stable. VLSFO and LSMGO are readily available nationwide, with standard lead times of around seven days.

In Western Australia, suppliers in Kwinana and Fremantle are recommending roughly one week’s notice. Most deliveries are conducted by barge through a single supplier, while LSMGO can also be distributed by truck. Strong afternoon winds continue to disrupt schedules intermittently.

In New South Wales, VLSFO is delivered by both truck and pipeline. Pipeline parcels typically begin at about 70 mt, with smaller volumes transported by truck. Sydney has one operational barge, alongside truck and limited pipeline options at selected berths. Delivery schedules are often adjusted to prioritise naval and cruise vessels. While VLSFO and LSMGO inventories are healthy, HSFO remains tight and generally requires seven days’ notice. The peak cruise season from December to February in Sydney, Cairns and Darwin is placing additional strain on berth and barge availability. A Sydney-based supplier noted that heavy vessel traffic is stretching port logistics, although overall supply conditions remain steady.

In Queensland, Brisbane and Gladstone continue to supply VLSFO and LSMGO with lead times of around seven days. HSFO is available on request in Brisbane. Gladstone may still face occasional weather-related disruptions, and access restrictions persist at Brisbane’s AAT terminal. Two barges operated by separate suppliers are active in Brisbane, handling VLSFO and LSMGO deliveries, while HSFO is supplied on enquiry.

In Victoria, suppliers in Melbourne and Geelong report robust stocks of VLSFO and LSMGO. HSFO remains tight for prompt stems, though Melbourne currently holds sufficient volumes. Both ports rely on a single barge, and lead times are close to seven days. LSMGO can also be trucked to smaller ports, such as Portland and Port Welshpool, within 2–3 days.

Overall, Australia’s bunker market appears balanced, with many deliveries achievable within three to four days due to comfortable stock levels. Even at ports equipped with pipelines, such as Darwin and Dampier, trucks continue to play a key role in distribution.

In New Zealand, supply conditions are steady. VLSFO is readily available in Tauranga and Auckland, with pipeline access at certain berths in Tauranga. Marsden Point can deliver both VLSFO and LSMGO via pipeline to cargo vessels, although truck supply across South Island ports remains limited.

South Asia

Adverse weather conditions are expected to impact operations at India’s Sikka between 25–26 February and at Visakhapatnam on 28 February, potentially disrupting bunkering activities at both ports.

In Sri Lanka, supply conditions remain stable. A supplier operating in Colombo and Hambantota is quoting lead times of around five days for all fuel grades, broadly unchanged from last week.

Middle East

In Fujairah, bunker availability remains extremely tight across all grades. Most suppliers are now quoting earliest delivery windows into March and are unable to confirm firm dates. Lead times across grades range from at least 10–12 days. A few suppliers can still accommodate prompt stems, but these typically come at high premiums. The tightness is being driven by strong demand, compounded by rising geopolitical tensions in the region, particularly escalating Iran–US strains. Many suppliers are delaying loading plans until there is greater clarity on the situation, a source said.

In Basrah, VLSFO and LSMGO are readily available, while HSFO continues to face supply constraints.

Jeddah reports good availability of both VLSFO and LSMGO, though adverse weather is expected to disrupt bunkering operations in Jeddah and Yanbu between 24–25 February.

At Port Suez, stocks of VLSFO, LSMGO and HSFO are nearing depletion. Weather-related disruptions are forecast at Port Suez on 26 February and at Port Said between 26–27 February.

In Ras Laffan, LSMGO remains in tight supply. VLSFO is available only by barge and exclusively at anchorage.

Djibouti is experiencing tight VLSFO availability, while LSMGO stocks are close to exhaustion.

Across Oman—including Sohar, Salalah, Muscat and Duqm—bunker supply conditions remain stable, with suppliers consistently offering LSMGO for prompt delivery.

By Tuhin Roy

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