East of Suez Market Update 19 Oct

Prices across the East of Suez ports have increased, and availability of all grades is tight at Fujairah.

IMAGE: Vessel docked at berth in Fujairah, UAE. Port of Fujairah

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

• VLSFO prices up in Zhoushan ($20/mt), Singapore ($13/mt) and Fujairah ($12/mt)
• LSMGO prices up in Fujairah ($67/mt), Singapore ($23/mt) and Zhoushan ($18/mt)
• HSFO prices up in Fujairah ($25/mt) and Zhoushan ($17/mt), and unchanged in Singapore

Zhoushan’s VLSFO price increase over the weekend has it now trading at a $30/mt premium to Singapore and a $31/mt discount to Fujairah. Zhoushan LSMGO premium over Singapore has slipped from $85/mt to $80/mt.

Zhoushan’s Hi5 spread has slightly widened from $69/mt to $72/mt, well below the spread at Fujairah but above that in Singapore.

Singapore’s Hi5 spread has widened more sharply from $29/mt to $42/mt, as its VLSFO gained $13/mt and HSFO remained unchanged on the day.

Fujairah’s Hi5 spread has moved the other way. A $25/mt HSFO gain, more than twice its VLSFO rise, has weighed on the spread and narrowed it from $242/mt to $229/mt.

Fujairah’s LSMGO price has shot up by $67/mt, the biggest move of any grade in the three ports.

The jump has widened Fujairah’s LSMGO premium over Singapore from $418/mt to $462/mt. Its premium over Zhoushan has grown from $333/mt to $382/mt.

Availability of all fuel grades is tight in Fujairah, according to a source. In Zhoushan, a source recommends lead times of 11 days for all fuel grades.

Brent

The front-month ICE Brent contract has jumped $3.27/bbl higher on the day from Friday, to trade at $108.51/bbl at 09.00 GMT.

Upward pressure:

Growing concerns over escalating conflicts in the Middle East, in addition to the ongoing Russia-Ukraine war, have kept Brent on its toes. The benchmark gained around 3% over last week, briefly touching $110/bbl on Friday, its highest level since May 2026, before closing just below that mark.

Houthi attacks on Saudi Arabia as well as intensified Iranian strikes on Gulf energy infrastructure and vessels in the Strait of Hormuz have heightened fears of supply disruptions.

Russia and Ukraine continue targeting each other's energy infrastructure, with the latest strike on Russia's Ryazan oil refinery adding to market jitters.

Downward pressure:

US President Donald Trump's decision to waive several sanctions on Russia could pave the way for more Russian fuel volumes to reach the global market, putting some downward pressure on Brent's price.

Trump signed the order on 16 October, just two days before the sanctions were due to take effect. The waiver also covers provisions allowing tariffs of up to 100% on major buyers of Russian oil and gas.

The move follows Trump's announcement of the diesel purchase deal with Russian President Vladimir Putin on 9 October. Trump said Russian shipments could start at around 2.3 million bbls this month, before climbing to 7.6 million bbls.

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By Konica Bhatt