Singapore's September LSMGO, LSFO sales rise

Sales of marine fuels from Singapore port in September totalled 3.9mn t, up by 230,000t from August but down by 214,000t from September last year.

This is the ninth consecutive month of falling bunker sales at the port compared with a year earlier. Bunker sales are now down by 2.3mn t or 6.15pc during January-September, provisional data from Singapore's Maritime and Port Authority (MPA) showed.

Consumption of high-sulphur fuel oil (HSFO) is holding up, with sales in September totalling 3.32mn t or 85pc of the port's total.

Sales of low-sulphur marine gasoil (LSMGO) rose to a record high of 284,000t, up by 66,000t from August. Demand for marine gasoil has been strengthening, although prices have not seen much upside. "There is no shortage of cargoes, which is leading to a price war", according to a market participant.

Low-sulphur fuel oil (LSFO) sales in September more than doubled to 174,000t. The majority of LSFO sold in Singapore has a maximum viscosity of 380cst, contrary to earlier expectations. LSFO sales in September with a maximum viscosity of 180cst reached 72,000t, while 380cst LSFO totalled 102,000t. "Lower viscosity LSFO would equal a quality giveaway and a value loss, so higher viscosity LSFO needs to be the cheapest way of fuelling ships", according to a market participant.

Argus reported an average of 20.5 bunker deals a day in September, split between 14 for HSFO, six for LSMGO and 0.5 for LSFO.

Singapore's delivered 380cst HSFO prices averaged $454/t in September, up from $382/t in August, data collected by Argus showed.

An estimated 3,394 vessels called at Singapore to refuel in September, down from 3,423 vessels the previous month, according to the MPA.

source: Argus Media