Bunker fuel demand at the key port of Singapore was tepid in January.
Total bunker sales declined by 9.1pc on the year to 4.46mn t, which was 6.9pc down from a month earlier, according to preliminary data from the Maritime and Port Authority of Singapore.
Demand for alternative marine fuels was stable at 206,500t, with total bio-blends consumption at 107,900t. Consumption of B24 HSFO-based fuel rose by 33pc on the month to 15,970t, and for B24 VLSFO-based there was a 2pc decline to 92,000t.
A sharp drop of 86pc was seen for LNG bunkering, to 6,600t.
Conventional bunker sales were lacklustre ahead of the lunar new year holiday at the end of January. Most buyers held a cautious procurement stance against an uncertain backdrop within the crude complex, after the US tightened sanctions on Russian energy exports.
Trading was subdued for very-low sulphur fuel oil (VLSFO) bunkers and January sales fell by 15pc on the year to 2.43mn t. This was steady on the month despite limited spot enquiries.
The seasonal slowdown coupled with a gradual rebound in Red Sea shipping traffic that resulted in shorter transit routes, contracting global tonne mile fuel demand.
In contrast, HSFO bunker sales, while steady year on year, saw a 11pc drop from December.
Rising premiums for HSFO, coupled with an expected slowdown in global tonne-mile fuel demand, should see HSFO demand retreating from its highs of 2024. The imposition of US tariffs threatens to further slow regional exports, particularly from China. This will probably have a knock-on effect on bunker demand, as trade activity declines.
