Singapore bunker market resilience in 2026

The global marine fuels market in 2026 has been defined by fuel availability rather than price, according to Alkagesta. Following the escalation of hostilities in the Middle East on February 28, which removed one-fifth of global crude oil supply, VLSFO prices surged past $1,000 per tonne. While Singapore entered the year with record-breaking momentum—including a 12% year-on-year sales increase in February—the subsequent supply shock forced a contraction. April volumes fell 8.7% month-on-month to 4.4 million mt, and May sales eased to 4.5 million mt as market backwardation prompted shipowners to delay bunkering and reduce stem sizes.

Despite the disruption, Singapore’s bunker volumes remained within single-digit percentage points of the previous year, demonstrating structural resilience. Competitive pressure from Chinese ports increased during this period, with the Singapore-Zhoushan VLSFO price spread reaching approximately USD 56/t on April 30. Chinese refiners, supported by access to competitively priced feedstocks, maintained output, and Ningbo-Zhoushan surpassed Singapore as the world’s second-busiest container port in the first quarter of 2026. Nevertheless, Singapore continues to leverage its regulatory framework and long-term infrastructure investment, including the issuance of its first methanol bunkering licences in November 2025.

For Alkagesta, navigating this volatile environment has required direct control over the supply chain. The company, which established its Asian operations in late 2024, secured storage capacity at Horizon Terminal by mid-2025 to manage quality and inventory independently. This physical foundation supports a monthly trading volume of approximately 200,000 metric tonnes. Furthermore, the firm maintains aggregate commodity trade finance facilities exceeding USD 1.2 billion, supported by relationships with 28 international banks. This liquidity platform allowed the desk to maintain supply continuity for customers even as flat prices rose and credit conditions tightened across the broader market.

The company attributes its operational stability during the crisis to long-term sourcing relationships and a rigorous compliance framework. By applying stringent KYC and sanctions screening standards, Alkagesta maintained its logistics and credit support throughout the disruption. While geopolitical uncertainty and the unresolved situation in the Strait of Hormuz continue to weigh on the near-term demand outlook, the firm remains focused on its medium-term strategy. Alkagesta continues to prioritise infrastructure depth and supply chain reliability to ensure fuel access for its partners, positioning itself to support the industry’s transition toward lower-carbon fuels and future regulatory requirements.

Looking ahead, Singapore’s status as a leading bunkering hub remains supported by its commitment to becoming a multi-fuel centre. As the shipping industry progresses toward decarbonisation, the port is well-positioned to meet the demands of the next decade, including those related to FuelEU Maritime requirements. Alkagesta’s Singapore desk maintains its objective of building long-term partnerships through consistent delivery and reliability. As noted by the firm, the defining risk for global shipping remains fuel access, and operators with the infrastructure and compliance standards to guarantee such access will be the most rewarded in the evolving market.