Singapore Aug bunker sales edge up 1.1% on year to 4.12 million mt

Bunker fuel sales at the world's largest bunker hub of Singapore rose 1.1% year on year to 4.116 million mt in August, but fell 0.1% from the previous month, according to preliminary data from the Maritime and Port Authority of Singapore Sept. 13.

Sales of the International Maritime Organization-compliant bunker fuel slipped 6.3% on the year but inched 0.2% higher on the month to 2.512 million mt in August.

The proportion of LSFO climbed for the first time in three months to comprise 61% of total bunker sales in August, up 1.22 percentage points from July but still 4.7 percentage points lower on the year.

Despite choppy bunker demand since August, the rising stockpiles of low sulfur fuel oil cargoes gradually lowered the Platts Singapore-delivered marine fuel 0.5%S bunker premiums over the benchmark FOB Singapore Marine Fuel 0.5%S cargo assessments to average $42.28/mt in August, compared with $104.08/mt in July, according to S&P Global Commodity Insights data.

Buyers were heard to have postponed the requirements as LSFO bunker premiums trend lower, which led more suppliers to offer competitively for prompt delivery dates amid elevated LSFO inventories while demand stayed capped, market sources said.

The number of bunker-only calls rose to a 15-month high of 3,212 in August, up 1% on the month and 0.7% on the year.

Total ship arrivals in August rose only 0.94% on the month but marked a 27.2% year on year increase, while arrivals of container liners gained 3.1% month on month and 21.37% higher on the year, data by MPA showed.

Sales of high sulfur bunker fuel – including 180 CST, 380 CST and 500 CST bunker fuel – dropped for the first time after three months of consecutive gains to 1.231 million mt in August, down 2.9% on the month but 16.7% higher on the year.

HSFO bunker sales in July accounted for 29.9% of total sales, 0.9 percentage points lower on the month and 4 percentage points above the previous year's figure.

Although overall HSFO bunker demand was steady in August, sales were relatively slower during the second half of the month while some sellers had reported slightly tighter cargo availabilities, according to local traders.

Sales of low sulfur marine gasoil -- which has a maximum sulfur content of 0.1% -- climbed to a three-month high of 330,400 mt, 13.9% higher on the year and 5.3% above July, MPA's data also showed.

Demand for LSMGO was mostly healthy in August and during the first half of September amid adequate product availabilities for downstream demand, while recorded volumes were aligned with estimates as traders expected a 10% increase in August from July.

Unit: *000 mt