11SEP2019 - NEWS - IMO-2020 fuel storage at 2.9mn t in Singapore: Vortexa

Inventories of IMO-compliant fuel oil and blending products reached 2.9mn t in Singapore on floating storage vessels at the end of August, according to estimates by oil analytics firm Vortexa.

Total offshore floating oil storage capacity in Singapore rose to 6.9mn t in the past 12 months, up by 2.6mn t, Vortexa said. Vortexa's estimates of high-sulphur fuel oil (HSFO) stocks were 300,000t lower over the past month, while low-sulphur fuel oil (LSFO) storage increased dramatically.

The number of very large crude carriers (VLCCs) storing IMO-compliant fuels is estimated to be 17, Vortexa said.

Singapore is the world's largest bunkering hub, with monthly marine fuels sales of around 4mn t. IMO-compliant marine fuel demand will probably be highest in Singapore next year. A dramatic increase in storage of 0.5pc fuel oil and blending components could result in lower demand for marine gasoil in 2020 than previously expected. MGO will account for 45pc of total global marine fuel demand in 2020, according to IEA forecasts in March. US investment bank Goldman Sachs forecasts MGO will cover 42pc of total marine fuel demand next year.