Securing bunker fuel in Singapore is becoming increasingly challenging, with industry sources recommending lead times of more than ten days as ongoing Middle East hostilities continue to disrupt fuel oil flows into the world’s largest marine fuels hub, according to Ship & Bunker.
Tight Availability Across All Grades
Prompt bunker stems are difficult to secure across all major grades in Singapore. According to sources speaking to Ship & Bunker, lead times for VLSFO and HSFO are currently ranging between 8 and 14 days, while LSMGO is even harder to source promptly due to comparatively tighter supply.
“We recommend floating inquiries asap currently, as lead times can be around 2 weeks out,” one trader told Ship & Bunker, adding that conditions are shifting on a daily basis. Ship & Bunker also reports that some suppliers are operating on a firm enquiry basis only and can accommodate shorter lead times, though typically at a price premium over later deliveries. Barge loading delays and port congestion are further complicating the situation, while spot demand remains robust.
Despite the tightness, sources told Ship & Bunker that fuel oil stocks in Singapore remain at healthy levels, and the port is not expected to face a shortage in the near term.
VLSFO Prices Surge, Then Ease
The Middle East conflict has had a dramatic impact on VLSFO pricing in Singapore. According to Ship & Bunker data, prices climbed sharply from $521.5/mt on February 27 — the day prior to reported US and Israeli strikes on Iran — reaching a peak of $1,120.5/mt on March 13. Since then, prices have retreated, falling to $838.5/mt on March 26, amid market speculation over potential US-Iran diplomatic talks.
Iranian actions in the Strait of Hormuz, including strikes on regional oil infrastructure and attacks on vessels transiting the waterway, have been cited as the primary driver behind the surge in underlying crude values, Ship & Bunker reports. While the pace of these incidents appears to have slowed recently, the market remains highly volatile.
Russia and Brazil Step In to Fill the Gap
With Hormuz transits under pressure, Singapore’s fuel oil import mix is shifting. Energy cargo tracker Vortexa reports that flows from Russia and Brazil are increasingly replacing Middle East supply.
Xavier Tang, Senior Market Analyst at Vortexa, told Ship & Bunker that Singapore’s residual fuel oil imports are expected to rise by 13% month-on-month in March, driven by higher inflows from both origins. Tang noted that Russian fuel oil imports into Singapore are on track to reach an 11-month high of approximately 270,000 barrels per day — also a 10-year seasonal high for March — while imports from Brazil are set to reach a one-year high of around 130,000 barrels per day.
Tang also highlighted the scale of the Hormuz disruption, telling Ship & Bunker that oil tanker transits of Handysize size and above through the strait have fallen to single digits, compared to 40 to 45 transits recorded in January. He added that the increase in Russian and Brazilian flows has largely offset the shortfall caused by reduced volumes from Kuwait and other Hormuz-dependent suppliers. A 30-day US waiver permitting purchases of previously sanctioned Russian oil has facilitated part of this shift.
Mixed Picture Across the Rest of Asia
Conditions vary at other regional bunkering ports, according to Ship & Bunker’s market checks:
- Japan: Availability is tightening as domestic refinery output is being prioritised for local refined product demand.
- South Korea: Prompt stems remain difficult to secure, with lead times of around five days recommended for both VLSFO and LSMGO, though overall demand has reportedly softened.
- Malaysia: VLSFO availability is relatively better positioned compared to LSMGO.
- Hong Kong & China: Supply is reported to be stable, with no significant availability concerns flagged by market participants.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker, Vortexa
