Singapore fuel supplies tight, prices have surged 160 percent

　　The world's largest ship fuel refueling center is showing signs of tight supply. Conflicts in the Middle East have caused fuel prices to fluctuate sharply, forcing distributors to manage risk exposure with unusual caution—despite authorities insisting that overall supply remains sufficient.

　　Singapore's marine fuel sales far exceed other ports, with its volume being more than three times that of the second-largest refueling port, Rotterdam. The fuel supply situation and price changes there immediately trigger a chain reaction affecting the global shipping industry.

　　According to ship brokerage company Allied Shipbroking, Singapore's marine fuel distributors have begun to reduce large purchase commitments to cope with the sharp price fluctuations caused by supply disruption risks in the Persian Gulf (one of the main fuel supply areas for this refueling center). Distributors typically purchase fuel oil and marine diesel in bulk before reselling it to arriving ships, but rapid price fluctuations have increasingly heightened the risk of forward purchases. The actual consequences include order delays, more cautious inventory management—and most critically, the way suppliers allocate existing inventory is changing.

　　Allied Shipbroking warned in its latest weekly report: "Reportedly, some suppliers prioritize supply to long-term customers while restricting or delaying other sales to control risk exposure from fuel price fluctuations." The report added that although overall supply remains relatively sufficient, this cautious behavior has created a tangible impression of tightening supply in the market.

　　The Maritime and Port Authority of Singapore (MPA) stepped in last Friday (March 13) to calm market sentiment, telling Singapore's Business Times that the port's ship arrival schedule has not seen significant changes, and Singapore's marine fuel imports from multiple channels are sufficient to meet current demand.

　　Price data, however, reflects a different situation. According to Clarksons Research, Singapore's very low sulfur fuel oil (VLSFO) price is currently around $1,100 per ton, having risen 160% since early 2026.

　　Ship & Bunker Executive Editor Jack Jordan stated: "Local suppliers in Singapore report that VLSFO and high sulfur fuel oil (HSFO) are currently adequately supplied, but low sulfur marine diesel is becoming tight. In other regions, supply is tighter than usual, but overall there is no shortage yet. However, the high premium of Singapore VLSFO over Brent crude—up $207.50 per ton this month, compared to an average discount of $5 in 2025—indicates high uncertainty about the market's future direction."

　　Aside from tight supply, Singapore's marine fuel market faces another unrelated thorny issue. Marine fuel testing company Maritec-Naias issued a warning last Friday, stating that multiple VLSFO samples provided by ships recently refueled in Singapore showed elevated compound levels—where alkylated benzenediol content ranged between 3,000 to 17,000 ppm, and phenolic compounds between 2,000 to 3,000 ppm.

　　The affected fuel is considered non-compliant with ISO 8217 standards, with ships reporting issues such as piston ring breakage, excessive sludge formation in separators, and accelerated wear of fuel pumps. Maritec-Naias advises shipowners to enhance monitoring of separators and avoid mixing affected fuel with other grades.

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