Singapore LSFO bunker demand surges in October

Sales of low-sulphur marine fuel rose sharply in Singapore in October, but a slump in demand for high-sulphur fuel oil (HSFO) sent total bunker sales lower for the tenth straight month.

Total sales in October were 3.8mn t, down by 131,000t from September and lower by 358,000t from October last year, provisional data from Singapore's Maritime and Port Authority (MPA) show.

This is the tenth consecutive month in which Singapore bunker sales have declined on a year-on-year basis. Total bunker sales in the first 10 months of 2019 fell by 2.66mn t or 6.4pc compared to the same period last year.

HSFO consumption recorded a large monthly drop for the first time in October, with total sales of 180cst, 380cst and 500cst marine fuel oil falling by 434,000t from September to 2.26mn t.

Sales of low-sulphur marine gasoil (LSMGO) rose to another record high at 294,000t, up by 10,000t from September.

Low-sulphur fuel oil (LSFO) sales more than tripled to 570,000t in October from 174,000t in September. The higher viscosity 380cst LSFO grade again accounted for the large majority of sales, at 459,000t.

The HSFO bunker market is weakening ahead of the International Maritime Organization (IMO) 2020 regulations, which will cap the sulphur content of marine fuel at 0.5pc from 1 January 2020 compared to 3.5pc now.

Argus reported an average of 23½ bunker deals a day in October, split between 11 for HSFO, 8½ for LSMGO and 4 for LSFO.

Singapore's delivered 380cst HSFO prices averaged $360/t in October, down from $454/t in September, data collected by Argus show.

An estimated 3,442 vessels called at Singapore to refuel in October, up from 3,394 vessels during the previous month, according to MPA statistics.

By Sammy Six