East of Suez Market Update 11 Sep
Prices across East of Suez ports have risen for all grades, and availability in Fujairah remains tight amid rising US-Iran tensions over the Strait of Hormuz.
IMAGE: Jetties, container ships and cranes in the Port of Colombo. Sri Lanka Ports Authority
Changes on the day to 17.00 SGT (09.00 GMT) today:
- VLSFO prices up in Fujairah, Zhoushan ($18/mt) and Singapore ($10/mt)
- LSMGO prices up in Zhoushan ($27/mt), Fujairah ($22/mt) and Singapore ($15/mt)
- HSFO prices up in Singapore ($15/mt), Fujairah ($14/mt) and Zhoushan ($11/mt)
- B30-VLSFO price up in Singapore ($26/mt)
Fujairah and Zhoushan's VLSFO prices have each climbed by $18/mt, tying for the steepest increase among the three major Asian bunker ports. Fujairah's price now stands at a $54/mt premium to Singapore and a $27/mt premium to Zhoushan.
Fujairah's HSFO price has risen by $14/mt. Consequently, the port's Hi5 spread has widened from $237/mt to $241/mt, and Zhoushan's from $201/mt to $208/mt — both now above Singapore's $186/mt.
US-Iran tensions over the Strait of Hormuz continue to disrupt bunker fuel availability in Fujairah, where supplies of all major grades are described as super tight amid a sharp fall in fuel oil imports.
Sri Lanka's bunker market remains broadly stable, with all major grades available at Colombo and Hambantota. One supplier recommends lead times of around seven days across all grades, compared to four days previously.
Brent
The front-month ICE Brent contract has gained by $1.79/bbl on the day, to trade at $104.09/bbl at 17.00 SGT (09.00 GMT) today.
Upward pressure:
Brent crude’s price is poised to end the week higher than it began, amid escalating US-Iran hostilities in the Middle East, dragging OPEC’s de-facto leader Saudi Arabia in the crossfire.
The Iran-backed, Yemeni militant group, the Houthis, have gained control of the Yemeni port city of Mokha and the islands of Hanish, advancing down the Red Sea coast.
“Oil prices surged again yesterday as tensions intensified in the Red Sea,” two analysts from ING Bank noted.
The move will allow the Houthis to increase control over the Bab al-Mandeb Strait, one of the world’s busiest shipping routes in the southern outlet of the Red Sea, according to analysts.
“As the Houthis have taken control of the Red Sea port of Mokha in Yemen, recent events increase the threat to shipping around the Bab al-Mandeb Strait,” ING Bank’s analysts added.
Downward pressure:
Brent’s price has felt some downward pressure after the Organization of the Petroleum Exporting Countries (OPEC) slashed global demand growth projection for the fifth consecutive time.
The Saudi Arabia-led group has reduced its global oil demand growth projection for 2026 to about 400,000 b/d, around 200,000 b/d lower than its previous estimate.
OPEC sees global oil demand to reach about 105.84 million b/d in 2026.
By Tuhin Roy and Aparupa Mazumder
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