East of Suez Market Update 11 Aug

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

IMAGE: Cargo terminal at the Port of Singapore. Getty Images

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

• VLSFO prices up in Singapore ($48/mt), Fujairah ($23/mt) and Zhoushan ($18/mt)
• LSMGO prices up in Fujairah ($52/mt) and Singapore ($48/mt), and down in Zhoushan ($22/mt)
• HSFO prices up in Singapore ($32/mt), Fujairah ($29/mt) and Zhoushan ($17/mt)
• B30-VLSFO price up in Singapore ($60/mt)

Singapore’s VLSFO price has risen by $48/mt over the past day, marking the steepest increase among the three major Asian bunker ports. The price now stands at premiums of $32/mt and $28/mt over Fujairah and Zhoushan, respectively.

VLSFO availability in Singapore remains tight, with suppliers now recommending lead times of 12–21 days, compared with 12–24 days last week. Supply continues to face pressure as the port’s fuel oil inventories have yet to recover to pre-conflict levels, while cargo inflows remain disrupted by fragile US-Iran peace, which continues to affect traffic through the Strait of Hormuz.

Enterprise Singapore data shows that Singapore’s fuel oil inventories fell from more than 23 million bbls in March, to below 18 million bbls in June. Although stocks recovered slightly to about 19 million bbls in July, they remain below 20 million bbls.

Several suppliers in Singapore are also grappling with tight delivery schedules, further contributing to the grade’s limited availability.

HSFO availability remains tight, with recommended lead times of 12–21 days, compared with 10–24 days a week earlier. LSMGO lead times have also increased to 4–12 days, from 2–11 days last week.

In Malaysia’s Port Klang, bunker fuel supply remains constrained. Prompt VLSFO availability is tight. LSMGO supply is limited, and HSFO continues to face supply pressure.

Brent

The front-month ICE Brent contract has gained by $5.36/bbl on the day, to trade at $89.92/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has gained by more than $5/bbl over the last session as the little remaining hope of a swift de-escalation between Washington and Tehran fades.

Iran’s announcement of six sweeping preconditions to reopen the Strait of Hormuz, followed by US President Donald Trump’s response has put upward pressure on oil this week.

Iran would consider reopening the critical waterway after its demands are met, it said earlier. In response, Trump demanded that Iran pay “compensation” to Washington for war-related damages.

“The oil market remains very headline-driven, which leaves prices whipsawing,” two analysts from ING Bank noted.

“The latest bout of optimism is quickly fading, with demands for war reparations from Iran, which President Trump rejected,” ING Bank’s analysts said.

Downward pressure:

While there are no major downward pressures acting on Brent’s price today, market analysts are keeping an eye out for any developments in the Iran-Oman agreement to reopen the Strait of Hormuz.

Last week, Tehran said it was getting closer to finalising a deal with Oman, regarding jointly managing the Strait of Hormuz.

By Tuhin Roy and Aparupa Mazumder

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