East of Suez Market Update 16 July

Regional bunker benchmarks have moved in mixed directions, while availability is good in Hong Kong.

IMAGE: Cargo ships in Victoria Harbour of Hong Kong, China. Getty Images

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

• VLSFO prices up in Singapore ($2/mt), and down in Fujairah ($3/mt) and Zhoushan ($1/mt)
• LSMGO prices up in Fujairah ($28/mt) and Zhoushan ($13/mt), and down in Singapore ($4/mt)
• HSFO prices up in Fujairah ($14/mt), Singapore ($12/mt) and Zhoushan ($1/mt)
• B30-VLSFO price down in Singapore ($8/mt)

VLSFO prices across the three major Asian bunker hubs have remained broadly stable over the past day. Singapore’s VLSFO price is at a $21/mt premium to Zhoushan, but at a $40/mt discount to Fujairah.

VLSFO availability in Singapore remains tight, with several suppliers reporting low stock levels. Recommended lead times have widened from 13–17 days last week to 15–18 days now.

By contrast, HSFO availability has improved slightly, with recommended lead times narrowing from 11–19 days a week ago to 10–12 days now. LSMGO supply has also eased, with lead times shortening from 8–10 days last week to 6–9 days.

Meanwhile, Hong Kong’s bunker market remains steady, with recommended lead times for all major bunker grades holding at around seven days, broadly unchanged from recent weeks.

Brent

The front-month ICE Brent contract has inched $0.44/bbl lower on the day, to trade at $84.24/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has felt some upward pressure after the US Energy Information Administration (EIA) reported a decline in US crude stocks.

Commercial US crude oil inventories decreased by 1.7 million bbls, to 409.7 million bbls, in the week ending 10 July, according to data from the EIA.

A drop in US crude stocks can indicate higher demand for oil and put some upward pressure on Brent's price.

“US commercial crude oil inventories remain near the lowest levels since 2022, while seasonally they are at their lowest level since 2018,” two analysts from ING Bank noted.

Downward pressure:

US President Donald Trump quickly abandoned plans to impose a 20% fee of a cargo’s value for the US to assist in safely transiting the Strait of Hormuz – this has continued to put some downward pressure on Brent’s price.

Moving away from his previous “reimbursement fee” rhetoric, Trump now aims to secure trade deals with Gulf states instead.

The US administration has remained silent on the specifics of the trade and investment framework Trump claims these nations will adopt with Washington.

By Tuhin Roy and Aparupa Mazumder

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