East of Suez Market Update 21 Sep
Prices in East of Suez ports have moved in mixed directions, while VLSFO availability in Zhoushan remains tight as suppliers have low stocks.
IMAGE: Gantry cranes and container ships in Ningbo-Zhoushan. ZJ Seaport
Changes on the day to 17.00 SGT (09.00 GMT) today from Friday:
- VLSFO prices up in Fujairah ($11/mt), and down in Singapore ($3/mt) and Zhoushan ($1/mt)
- LSMGO prices up in Fujairah ($10/mt), Zhoushan ($4/mt), and down in Singapore ($12/mt)
- HSFO prices down in Fujairah ($39/mt), Singapore ($11/mt) and Zhoushan ($4/mt)
- B30-VLSFO price down in Singapore ($5/mt)
VLSFO prices in Singapore and Zhoushan have remained broadly steady over the weekend, while Fujairah's benchmark has risen. Zhoushan's VLSFO price stands at a premium of $55/mt over Singapore, but is at a discount of $77/mt to Fujairah.
In Zhoushan, VLSFO lead times remain unchanged from last week at around 10 days, as several suppliers are running low on stocks and replenishment cargoes have been delayed, a source said. In contrast, LSMGO and HSFO lead times have shortened from around 10 days last week, to about seven days now.
In Taiwan, lead times for VLSFO and LSMGO stand at around two days across Keelung, Taichung, Hualien and Kaohsiung, almost unchanged from last week.
Brent
The front-month ICE Brent contract has lost by $0.81/bbl on the day from Friday, to trade at $101.90/bbl at 17.00 SGT (09.00 GMT) today.
Upward pressure:
Brent crude’s price has felt some upward pressure as supply-related risks continue to persist.
The US President Donald Trump has issued fresh warnings, stating that Iran risks being “wiped out” entirely, if it does not comply with Washington’s demands.
In response, Iranian military said further attacks will trigger retaliation against US bases in the region and Washington's allies will be considered parties to the conflict.
“The broadening of the Middle East conflict also increases the odds of the conflict persisting for the foreseeable future, and keeping oil supply from the Persian Gulf constrained,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
Downward pressure:
Brent crude’s price has started the week on a soft note, as the market sets its sights on the United Nations General Assembly (UNGA) summit, scheduled to take place in New York later this week.
The meeting will be attended by Iranian President Masoud Pezeshkian. Traders are quietly betting that the high-stakes diplomacy could yield a breakthrough, potentially easing some supply disruptions.
In other news, Trump will hold a high-stakes summit in Washington with Chinese counterpart Xi Jinping on 24 September.
The news has lifted some market confidence as a dialogue between the world's two top economic superpowers could stabilise trade corridors that are currently in fragile conditions.
“Hopes for constructive discussions at this week's UN General Assembly (UNGA) and the upcoming Trump-Xi meeting, helped improve market sentiment,” two analysts from ING Bank reported.
By Tuhin Roy and Aparupa Mazumder
Please get in touch with comments or additional info to news@engine.online
