Singapore Marine Fuel Sales Hit 20-Month Low in February

In February, Singapore’s marine fuel sales dropped to their lowest level in 20 months, according to official data released on Friday. The data from the Maritime and Port Authority of Singapore (MPA) showed that volumes at the world’s leading bunker hub totaled 4.15 million metric tons, marking a 7.1% decrease from the previous month and an 8.1% decline year-on-year.

The decline in sales can be attributed to weak demand that has been affecting the market since the beginning of the year, leading to a decrease in premiums, as reported by trade sources.

Vessel calls for bunkering also saw a significant drop, falling by 14.1% from the previous month to 3,075, reaching a two-year low, according to the data.

The sales of the mainstay 0.5% low-sulphur fuel oil (VLSFO) experienced a sharp decline in February, totaling 2.07 million tons and hitting multi-year lows. Singapore delivered-basis bunker premiums for VLSFO reached year-to-date lows, dropping to single digits by late February after being in the low $10s in January.

On the other hand, high-sulphur marine fuel (MFO) volumes decreased by 1.9% to 1.62 million tons, although they were slightly higher year-on-year.

Meanwhile, total marine gasoil sales witnessed a 21.2% increase month-on-month, reaching 314,600 tons.

There was stability and growth in the sales of alternative fuels, with marine biofuel volumes rising by 2.8% to 110,900 tons. Additionally, a delivery for B100 or 100% biofuel was recorded for the first time. Furthermore, liquefied natural gas (LNG) bunker sales more than quadrupled to 30,000 tons in February.

Container throughput at Singapore also saw a decline, falling by 5.2% to 3.32 million twenty-foot equivalent units (TEUs) in February, reaching their lowest level since September of the previous year.

The data from the Maritime and Port Authority of Singapore provides valuable insights into the dynamics of the marine fuel market in one of the world’s key bunkering hubs. The figures are based on the latest available data and may be subject to revision at a later date, according to the MPA.

Overall, the decrease in marine fuel sales in Singapore in February reflects the broader challenges facing the industry, including weak demand and fluctuating market conditions. Industry players will be closely monitoring these developments as they navigate the evolving landscape of the marine fuel market.

(Data source: Maritime and Port Authority of Singapore; Reuters)