War rattles world’s largest bunkering hub

Singapore sells more bunker fuel than any other port by a considerable margin, shifting more than three times as much fuel as its nearest rival. What happens to availability and pricing there ripples across global shipping with immediate effect.

According to Allied Shipbroking, bunker distributors in Singapore have begun reducing large purchasing commitments in response to violent price swings linked to disruption risks in the Persian Gulf, a major supplier of fuel oil to the hub. Distributors typically buy large volumes of fuel oil and marine gasoil before reselling to calling vessels, but rapid price movements have made forward purchasing increasingly hazardous. The practical consequence has been delayed orders, more cautious inventory management – and, critically, a shift in how suppliers are allocating what stock they do hold.

“Some suppliers have reportedly prioritised long-standing customers while limiting or postponing other sales in order to control exposure to volatile fuel prices,” Allied warned in its latest weekly report, adding that while overall supply remains relatively adequate, the cautious behaviour has created a tangible impression of tightening availability across the market.

The Maritime and Port Authority of Singapore moved to calm nerves last Friday, telling the local Business Times that vessel arrival schedules at the port had seen no significant changes and that Singapore’s bunker supply – drawn from several sources – is sufficient to meet current demand.

The price data tells its own story. Clarksons Research puts Singapore VLSFO at approximately $1,100 per tonne, up 160% since the start of 2026.

Jack Jordan, managing editor of Ship&Bunker, told Splash today: “Local suppliers in Singapore are reporting VLSFO and HSFO availability are okay for now, though LSMGO is getting tight. Elsewhere, availability is tighter than usual, but generally not running short yet. But the wide premium for VLSFO in Singapore over Brent – at $207.50 per tonne so far this month, compared to a discount of $5 per tonne on average in 2025 – is a sign of high levels of uncertainty in the market about what’s coming next. China halting refined product exports is a particular concern.”

Singapore’s bunker market faces a separate and unrelated headache on top of the supply crunch. Bunker testing firm Maritec-Naias issued an alert on Friday, warning of elevated levels of chemical compounds – including Alkylresorcinols in the range of 3,000 to 17,000 PPM and Phenolic compounds between 2,000 and 3,000 PPM – found in multiple VLSFO samples from vessels that bunkered in Singapore over recent months.

The affected fuels are considered off-spec under ISO 8217, with vessels reporting piston ring breakage, excessive sludge formation in purifiers, and accelerated wear on fuel pumps. Maritec-Naias recommended that shipowners increase purifier monitoring and avoid blending the affected fuel with other grades.