East of Suez Market Update 20 Apr

Prices in East of Suez ports have moved down, and availability is good across all grades in China’s Zhoushan.

IMAGE: Night scene of Zhoushan, close to the dock on Putuo island. Getty Images

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

• VLSFO prices down in Singapore ($34/mt), Fujairah ($24/mt) and Zhoushan ($15/mt)
• LSMGO prices down in Singapore ($119/mt), Fujairah ($97/mt) and Zhoushan ($91/mt)
• HSFO prices up in Singapore ($1/mt), and down in Zhoushan ($19/mt) and Fujairah ($15/mt)
• B30-VLSFO prices down in Singapore ($44/mt)

VLSFO prices across the three major Asian bunker ports have fallen by $15–34/mt over the weekend. Zhoushan's VLSFO is priced at premiums of $41/mt over Singapore and $34/mt over Fujairah.

Availability in Zhoushan remains strong across all grades, with recommended lead times of 3–7 days, almost unchanged from last week. However, adverse weather conditions could disrupt bunkering operations later this week, according to a source.

In Taiwan, supply conditions remain steady, a local trader said. Lead times are holding at around two days for both VLSFO and LSMGO across Keelung, Taichung, Kaohsiung and Hualien.

Brent

The front-month ICE Brent contract has lost by $2.25/bbl on the day from Friday, to trade at $95.20/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has opened the week higher, clawing back some previous losses, after the US Navy said it has seized another Iranian vessel attempting to enter an Iranian port, undermining the US blockade.

Iranian-flagged cargo vessel M/V Touska was moving towards Iran’s Bandar Abbas port when it was seized by US forces, the US Central Command (CENTCOM) reported.

This news has “rekindled market concerns of further escalation in the Middle East conflict, undermining any fresh ceasefire talks between the two nations,” two analysts from ING Bank noted.

Downward pressure:

The US and Iran are scheduled to resume negotiations today in Islamabad, Pakistan – in another attempt to reach a ceasefire deal, according to media reports.

Although Iran has not confirmed its presence in today’s meeting, Brent’s price has felt downward pressure following the news.

Brent’s losses follow a sharp sell-off on Friday, triggered by Iranian foreign minister Seyed Abbas Araghchi's announcement on X that the Strait of Hormuz will be fully reopened to commercial vessels.

US President Donald Trump welcomed the news in a post on social media platform Truth Social, adding that the US naval blockade of Iranian ports will remain in effect until negotiations with Tehran are “100% complete”.

“The oil market continues to edge lower amid hopes that the US and Iran extend their ceasefire by another two weeks, along with a potential resumption in talks to bring an end to the war,” ING Bank’s analysts added.

By Tuhin Roy and Aparupa Mazumder

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