Singapore bunker sales slump to 11-month low

London, (Quantum Commodity Intelligence) – Total sales of bunker fuel in the refuelling hub of Singapore fell to an 11-month low in May as higher sulfur sales tanked on fresh competition from China.

Sales totalled 4.07 million mt, according to Monday's data from the Marine Port Authority of Singapore, of which 984,000 mt was higher sulfur bunkers and 3.087 million mt was 0.5% sulfur fuel.

Sales of 3.5% sulfur were 10% down on the month and the lowest since September 2019, while sales of 0.5% were just 1% down and the lowest since February.

The slump in sales comes amid a rise in crude imports and bunkering sale in China, which this year increased its quota for independent refiners by 20% on the year.

The number of ships fell by 108 on the month to 3,350, according to the data.

Refining margins for 0.5% marine fuel fell from $3.66/b at the start of the month to $1.39/b by the end of the month, according to Quantum data, with higher sulfur cracks falling from -$6.97/b to -$10.53/b.

May sales for 0.5% were broadly stable for 0.5% compared to the same month a year earlier, but 3.5% sulfur sales were nearly 30%.