Ships filled with jet fuel to petrol wait in Singapore Strait amid slump in oil demand

About 60 tankers are anchored off Singapore, with some being used to store fuel at sea while others are sitting out the Covid-19 pandemic

The glut has been compounded by offloading delays, with vessels having to wait about two weeks to discharge cargoes, leaving ships stranded

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An oil tanker is seen off Jurong Island in Singapore. About 60 clean fuel tankers are currently anchored along the busy strait, with some being used to hoard fuel at sea and others parked as the Covid-19 outbreak affects the oil market. Photo: Reuters

Published: 1:48pm, 27 Apr 2020Updated: 9:34pm, 27 Apr 2020

A narrow waterway off Singapore has become even more congested as oil-laden tankers wait out a slump in global fuel consumption that has crimped demand and boosted the use of ships to store cargoes.

About 60 clean fuel tankers are currently anchored along the busy strait, up from the usual 30-40 ships, according to Rahul Kapoor, head of commodity analytics and research at IHS Markit.

Some vessels are being used to hoard fuel at sea as onshore tanks fill up. Others are probably parked, waiting to be redirected to any willing buyer across Asia and the world as the coronavirus pandemic pummels economies worldwide.

Oil storage tanks on Jurong island off Singapore. Photo: AFP

Ships filled with petrol to jet fuel are moving from major refinery hubs such as South Korea and China due to a crash in domestic demand and swelling stockpiles.

These tankers are finding their way to the Singapore Strait, where the glut is being compounded by offloading delays at the city state. Vessels currently have to wait about two weeks to discharge cargoes in Singapore, compared to the typical 4-5 days, according to shipbrokers and traders, leaving ships stranded in local waters.