Marine fuel sales in Singapore hub increased in October

Marine fuel sales in Singapore surged to a one-year high in October, latest official data showed, as more competitive prices attracted ships to refuel at the world’s top bunkering hub. 

October bunker sales totaled 4.25 million tonnes, climbing 7% from September, while vessel arrivals for bunkering at Singapore rose 9% month-on-month at 3,431 vessel calls, data from Singapore’s Maritime and Port Authority showed.  

Prices for ship refueling were lower in Singapore in October, compared with other regional bunkering ports such as Zhoushan and South Korea, bunker fuel traders said. 

Earlier weather disruptions in North Asia kept bunker fuel premiums elevated at North Asian ports.

Sellers were also trying to clear inventories before the year ends amid a strong market backwardation, which means the current value is higher than it will be in later months and encourages traders to release oil from inventories.

The selling pressure has continued into November as the backwardation remains steep at around $8/mt and interest rates are still high, Yaw added.

Total sales of low-sulfur marine fuel oil at Singapore rose 5% from the previous month to 2.59 million tonnes, while total sales of high-sulfur marine fuel oil climbed 18% to 1.31 million tonnes.

Meanwhile, total marine gasoil sales were down 6% as high prices of the product deterred uptake, compared with marine fuel oil grades.

Bunker fuel premiums for 0.5% low-sulfur fuel oil trended lower into October after fuel oil cargo premiums for the product fell.