East of Suez Market Update 13 Nov

Regional bunker benchmarks have risen, and prompt availability of all grades is very 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 ($36/mt), Fujairah ($31/mt) and Zhoushan ($17/mt)
• LSMGO prices up in Singapore ($45/mt), Fujairah ($36/mt) and Zhoushan ($32/mt)
• HSFO prices up in Singapore ($29/mt), Fujairah ($8/mt), and unchanged in Zhoushan

Singapore’s VLSFO price has climbed by $36/mt on the day. It stands at a $5/mt discount to Fujairah and a $21/mt discount to Zhoushan.

Singapore’s Hi5 spread has edged up from $173/mt to $180/mt, moving above Zhoushan’s $164/mt but staying below Fujairah’s $270/mt.

Fujairah’s LSMGO price has gained another $36/mt over the past day, bringing its rise to $134/mt in three days. Its premium over Zhoushan’s LSMGO has widened by $4/mt to $359/mt, but the premium over Singapore has narrowed by $9/mt to $418/mt.

Fujairah’s LSMGO also commands a premium over other major East of Suez ports. The premium has stretched by $6/mt to $369/mt over Hong Kong and by $4/mt to $411/mt over Busan.

Port Klang has closed some of the gap, as a $53/mt jump in its own LSMGO price trimmed Fujairah’s premium by $17/mt to $260/mt.

Prompt availability of HSFO, VLSFO and LSMGO is very tight in Singapore. Lead times for all grades range between 10-17 days.

At least two suppliers in Fujairah could offer VLSFO for an enquiry 2-5 days out, one source said. Bunker supply is tight in Dubai.

Brent

The front-month ICE Brent contract has gained by $3.36/bbl on the day, to trade at $96.12/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has felt some upward pressure after US President Donald Trump said Washington does not need a deal with Iran to end the war.

“We don’t need a deal with Iran. Those days have long since passed,” Trump wrote on social media platform Truth Social yesterday.

He added that the US controls Iran’s money and the Strait of Hormuz.

“Developments in the Strait of Hormuz remain the key driver for the oil market,” two analysts from ING Bank noted.

Attacks on commercial vessels transiting the Persian Gulf have also continued. Iran’s military said four oil tankers were hit by explosions in the Strait of Hormuz yesterday after ignoring its warnings, Reuters reported.

“An improvement in regional flows would allow more of the geopolitical premium to unwind, although continued disruptions leave the market vulnerable to renewed upside,” ING Bank’s analysts added.

Downward pressure:

Brent’s gains have been capped by a rise in US crude and fuel oil stocks.

Commercial US crude oil inventories rose by 4.7 million bbls to 414.4 million bbls in the week ending 6 November, according to the US Energy Information Administration (EIA).

A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent’s price.

By Konica Bhatt and Aparupa Mazumder

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