ENGINE: East of Suez Fuel Availability Outlook

The bunker fuel market remains tight in Singapore and Malaysia, with recommended lead times for VLSFO at 13-17 days, nearly unchanged since last week. Most suppliers hold low stock levels, while cargo arrival delays due to Middle East conflict have further strained availability. HSFO supply has improved slightly, with lead times easing to 9-12 days, while LSMGO has strengthened with lead times narrowing to 5-7 days.

Singapore's residual fuel oil stocks have increased by 7% this month, reaching over 20 million barrels, driven by an 18% rise in net fuel oil imports.

Malaysia's Port Klang also experiences bunker supply constraints, with prompt VLSFO availability particularly tight and LSMGO limited. Hong Kong's bunker market remains stable, with suppliers maintaining lead times of around seven days for major grades. Taiwan's VLSFO and LSMGO lead times are at about two days at several ports, unchanged from last week.

South Korea's lead times for major grades at southern ports have settled at around nine days, compared to 6-10 days a week earlier. Western ports, including Incheon, Daesan, Dangjin, Pyeongtaek, and Taean, face similar conditions with lead times at around nine days, compared to 6-10 days previously. Weather-related disruptions may affect bunkering operations at Busan, Ulsan, and Yeosu until 23 September, while Daesan may face disruptions from 25-26 September.

In Japan, recent operational issues have been resolved, but the September loading schedule is fully committed, leaving prompt supply virtually exhausted. Some October availability is emerging, but suppliers require firm inquiries subject to confirmation. The trader suggests arranging bunker requirements well in advance due to tight market conditions during the Silver Week holiday from 19-23 September.

Indonesia maintains healthy bunker fuel availability, with suppliers recommending VLSFO lead times of just 2-3 days at Jakarta, Surabaya, Balikpapan, and Cigading. In Oceania, Western Australia's bunker fuel supply remains stable, with VLSFO readily available at Kwinana and Fremantle, quoted lead times of around seven days. Australia's east coast ports have mixed supply conditions; Port Kembla has normal VLSFO supply with truck or pipeline delivery, while Sydney has adequate VLSFO and LSMGO availability.

Melbourne and Geelong have comfortable VLSFO stocks but tighter HSFO availability. Brisbane and Gladstone have ample VLSFO and LSMGO availability with one-week delivery lead times. Melbourne and Brisbane also face tighter HSFO supply, while one supplier offers VLSFO, LSMGO, and HSFO at Brisbane, Sydney, and Melbourne with approximately five-day lead times.

Dampier Cargo Wharf's pipeline bunkering in Western Australia is expected to remain suspended until late September due to repair work, with limited truck deliveries available depending on vessel size.