East of Suez Market Update 10 Mar

Most prices in East of Suez ports have moved up, and availability across all grades is tight in Zhoushan.

IMAGE: Aerial view Zhoushan City, Zhejiang Province. Getty Images

Changes on the day to 17.00 SGT (09.00 GMT) today:

• VLSFO prices up in Zhoushan ($214/mt), Fujairah ($181/mt) and Singapore ($90/mt)
• LSMGO prices up in Zhoushan ($154/mt) and Fujairah ($74/mt), and down in Singapore ($35/mt)
• HSFO prices up in Zhoushan ($69/mt), Singapore ($67/mt) and Fujairah ($64/mt)

VLSFO prices across the three major Asian bunker ports have climbed by $90–214/mt over the past day, with Zhoushan recording the steepest increase. Zhoushan’s VLSFO has shifted from a substantial $90/mt discount to Singapore to a $34/mt premium, while also moving from near parity with Fujairah to a $28/mt premium.

The benchmark has been gaining ground in Zhoushan as escalating geopolitical tensions in the Middle East have pushed Brent's price higher and disrupted trade flows through the Strait of Hormuz, a critical route for global oil shipments. These developments have tightened fuel availability across all grades in Zhoushan, reinforcing the upward price momentum, a source said.

Lead times have lengthened as supply tightens. VLSFO and LSMGO now require around 5–10 days, compared with 3–5 days last week. HSFO availability appears particularly strained, with most suppliers running low on stocks and refraining from offering any lead time indications for the grade, the source added.

Another notable shift has emerged in Singapore, where some suppliers have paused new bookings for B24-VLSFO. The move may appear unusual, given that much of the UCO/UCOME feedstock originates from China. However, suppliers may be prioritising conventional VLSFO sales to capitalise on the current price rally before offering biofuel blends, a trader explained.

Brent

The front-month ICE Brent contract has dropped by $13.99/bbl on the day, to trade at $92.81/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Concerns over smooth transit through the Strait of Hormuz continues to support oil prices after Iran’s Revolutionary Guards said it would not allow crude oil to be shipped from the Middle East if US and Israeli attacks continue.

The global oil market “will need to see a resumption of oil flows through the Strait of Hormuz to sustain a move lower in oil prices,” two analysts from ING Bank said.

Downward pressure:

Brent futures have fallen after climbing above $100/bbl in the previous session, as the conflict between the US, Israel and Iran has shown signs of de-escalation.

US President Donald Trump yesterday said that the war could end earlier than his previously stipulated timeframe of four weeks, Reuters reported. However, he cautioned that the US could intensify attacks if Iran blocks traffic through the Strait of Hormuz.

Additionally, the Group of Seven (G7) developed countries announced yesterday that they were prepared to take necessary steps to curb rising global oil prices but refrained from committing a joint release of oil from emergency reserves.

Reports that “G7 finance ministers were considering a significant release of oil from strategic reserves, along with comments from President Trump suggesting that the war might end soon, sent prices plunging later in the session,” two analysts from ING Bank noted.

By Tuhin Roy and Shilpa Sharma

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