Singapore saw marine fuel sales in December of 4.31mn t, bringing last year's total to 49.8mn t compared with 50.64mn t in 2017 as fewer vessels called at the port to refuel.
This is the first time in four years that bunker sales fell against the previous year, following a fuel oil contamination issue and the continuing US-China trade war.
Consumption for the 2018 first half posted a 428,000t increase compared with the same period in 2017, although this was more than offset by a 1.266mn t fall during the second half of the year, provisional data from Singapore's Maritime and Port Authority showed. Some suppliers in Singapore during the third quarter offered off-specification bunkers as a result of contaminated fuel oil cargoes originating from the US Gulf coast.
Weak demand in November from refiners to use fuel oil as a feedstock, combined with shutdowns of secondary units, sent more low-density and low-viscosity fuel oil, along with straight-run fuel oil, to the regional trading hub of Singapore. This left the market with a grade mismatch and created a shortage of 380cst high-sulphur fuel oil (HSFO) bunker fuel supplies. Delivered cash premiums for 380cst bunker to Singapore 380cst cargo assessments shot up to record levels of $25-35/t from more normal levels of $12-16/t, prompting shipowners to bunker in other ports such as Hong Kong and Fujairah where prices were often more competitive.
Sales of 0.1pc low-sulphur marine gasoil (LSMGO) in December reached an all-time record of 191,000t, up by over 50,000t from November. LSMGO sales are expected to see further growth over the coming months with China's 1 January 2019 introduction of a 0.5pc marine fuel sulphur cap now covering the country's entire coastline. Argus has recorded an average of 8.22 LSMGO deals each day this month, nearly double as many compared with December.
Singapore's delivered 380cst HSFO prices averaged $379/t in December compared with $463/t in November, Argus data showed.
An estimated 3,465 vessels called at Singapore to refuel in December, up by 210 from the previous month. Total vessel visits for bunkering purposes reached 39,471 in 2018, down by 1,265 from 2017.
