Marine fuel sales in Singapore, the world's biggest refuelling hub for ships, increased in March, although gains were capped by higher bunker prices following the Middle East crisis, according to trade sources and port data.
March volumes totalled 4.77 million tonnes, up 1.9 per cent from the prior month and up 6.6 per cent from the year-earlier period, data from the Maritime and Port Authority of Singapore showed.
More demand emerged in Singapore and other Asia bunker ports as ships avoided the Middle East and Strait of Hormuz after the US-Iran conflict broke out. Sales of delivered 0.5 per cent low-sulphur fuel oil (VLSFO) and high-sulphur marine fuel (MFO) both climbed in March, reaching 2.34 million tonnes and 1.93 million tonnes, respectively.
The market remained well-supplied last month, trade sources said, despite initial concerns of fuel oil shortage after the Middle East conflict curtailed supply out of the Strait of Hormuz.
However, a sharp jump in bunker prices and premiums capped purchases in the second half of the month.
Prices of marine gasoil soared the most due to tighter supply, according to trade sources. Singapore's marine gasoil sales slipped to 352,300 tonnes in March, hitting a 10-month low, MPA data showed.
Alternative fuel volumes also declined, with liquefied natural gas (LNG) bunker sales sliding 16.9 per cent from February to 49,000 tonnes in March.
Volumes of bio-blended marine fuels dipped 0.4 per cent to 92,300 tonnes. Container throughput at Singapore rose 13.9 per cent from February to 3.9 million twenty-foot equivalent units (TEU) in March, while vessel calls for bunkering climbed 2.3 per cent to 3,502 calls.
(Reporting by Jeslyn Lerh; Editing by Subhranshu Sahu)