Cargoes move east. File Image / Pixabay.
Stocks of heavy distillates in the bunkering and shipping hub of Fujairah stood at 9.18 million barrels at the start of the week, down 9.3% from a week earlier and the lowest in three weeks.
Fujairah has seen more high sulphur fuel oil cargoes (HSFO) moving to Asia to meet winter demand for power generation, limiting supplies of both high and low sulphur product for shipping at the port, according price reporting agency SP Global Platts citing market sources.
"HSFO ex-wharf loading slots still seem tight. Buyers are struggling to get offers for January loading dates," a Fujairah-based bunker supplier was quoted as saying.
Shipments of low sulphur fuel oil (LSFO) cargoes into the port have also declined on the back of higher prices in Singapore while poor weather off Fujairah has limited inflows of replenishment cargoes.
In response, LSFO suppliers have stretched bunkering lead times due to the waning stockpiles of prompt supplies, market sources told the report.