Singapore marine fuel sales rise amid stabilizing global bunker supply

Marine fuel sales in Singapore rose for the fourth consecutive month in August, reaching 4.77 million tonnes. This represents a 0.7 per cent increase from July, driven largely by strong demand for high-sulphur fuels, which grew by 7.3 per cent month-on-month. Conversely, low-sulphur fuel volumes decreased by 5.8 per cent during the same period.

Industry experts at the Asia Pacific Petroleum Conference (APPEC) noted that the marine fuel supply squeeze previously caused by disruptions in the Strait of Hormuz has eased. While bunker prices, such as Very Low Sulphur Fuel Oil (VLSFO), have seen significant increases since the start of the year, major shipping hubs are no longer facing the acute shortages observed earlier in the year.

Despite the easing of supply concerns, market volatility remains. The Fujairah bunkering hub in the United Arab Emirates is currently operating at approximately 40 per cent of its pre-war activity levels. Traders indicated that while alternative supply sources are available, challenges remain regarding the availability of specific blending stocks required to meet market specifications.