ENGINE: East of Suez Fuel Availability Outlook

East of Suez, the outlook for fuel availability is tightening, with lead times extending for various bunker grades. Singapore's VLSFO market has become more constrained, with lead times ranging from 9-16 days, up from 7-19 days earlier. HSFO availability has also tightened, with lead times extending to 8-16 days, compared to 6-12 days previously.

LSMGO lead times vary widely between 2-11 days, while they were 4-9 days a week earlier. Singapore's fuel oil inventories have fallen below 19 million barrels, with RFO stocks averaging 2% below July levels. Net fuel oil imports have plummeted by 41% month on month, with a decline in imports and a rise in exports. Malaysia's Port Klang is also experiencing constrained supply at its port.

Despite subdued bunker demand in East Asia, suppliers in Zhoushan advise VLSFO lead times of about ten days, compared to 7-10 days earlier. LSMGO and HSFO lead times have similarly lengthened to about ten days. Supply conditions remain uneven across China, with varying availability across different ports. In Hong Kong, market conditions remain unchanged, with suppliers maintaining lead times of around seven days for all major grades.

Taiwan's bunker market is comparatively well supplied, with VLSFO and LSMGO available in around two days, and Taichung requiring slightly longer lead times of 3-4 days. In South Korea, bunker demand has softened, leading to tightened availability at southern ports, with lead times extending to 9-18 days. In Japan, supply conditions have improved for September, with major refineries relaxing ex-wharf supply restrictions and monthly allocations to suppliers, making cargo availability more secure.

Oceania, Western Australia's VLSFO availability is steady at Kwinana and Fremantle, while conditions are more mixed along the east coast. In New Zealand, VLSFO remains readily available at Tauranga and Auckland, with lead times of around four days.