East of Suez Market Update 23 Mar

Most prices in East of Suez ports have moved up, and availability of all grades is good in Zhoushan.

IMAGE: Bunker barge Zhou Bunker 8 supplies fuel to a ship in Zhoushan, China. ZS Bunker

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

• VLSFO prices up in Fujairah ($51/mt), Singapore ($13/mt), and down in Zhoushan ($25/mt)
• LSMGO prices up in Singapore ($125/mt), Fujairah ($123/mt) and Zhoushan ($102/mt)
• HSFO prices up in Fujairah ($47/mt), Singapore ($3/mt), and down in Zhoushan ($4/mt)
• B30-VLSFO prices up in Singapore ($10/mt)

Zhoushan’s VLSFO price has declined by $25/mt over the weekend, while prices in Fujairah and Singapore have moved higher. Despite this drop, Zhoushan’s VLSFO price remains above the $1,000/mt threshold and continues to hover near multi-year highs. It is currently priced at a premium of $25/mt over Singapore, while still at a notable discount of $125/mt compared to Fujairah.

Meanwhile, bunker prices across most Asian ports have risen sharply, largely tracking higher crude prices as tensions escalate in the Middle East—especially around the Strait of Hormuz.

In response, China imposed a ban on refined fuel exports in March to avoid a potential domestic fuel shortage arising from Middle East tensions, a source said.

Despite this, availability across all grades remains good, according to a Zhoushan-based trader. Most suppliers are now recommending lead times of 3–5 days across all grades, easing from 5–10 days last week.

In Taiwan, bunker availability has not been significantly impacted by Middle East tensions, though there have been a few more bunker calls. Prices, however, have reacted more strongly, as the Brent rally linked to Middle East tensions has significantly influenced bunker prices over the weekend, a trader said.

Recommended lead times for VLSFO and MGO in Keelung, Taichung and Hualien are around two days, while deliveries in Kaohsiung require approximately three days, due to CPC MGO barge maintenance.

Brent

The front-month ICE Brent contract has gained by $4.36/bbl on the day from Friday, to trade at $113.33/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent’s price has gained nearly $5/bbl at the start of this week as tensions in the Middle East have amplified.

Over the weekend, US President Donald Trump issued a warning that Washington would “obliterate” Tehran’s power plants within 48 hours, if its forces continued to block vessel movement through the Strait of Hormuz.

The deadline is set to expire today evening in Washington. Market analysts expect a sharp volatility in Brent’s price over this period.

“US officials said the White House is sending hundreds of Marines to the Middle East as it weighs up a plan to seize Iran’s Kharg Island oil export hub,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Meanwhile, Israel's health ministry said about 180 people were injured in Iranian missile strikes on two southern Israeli towns close to a nuclear facility, the BBC reported.

Around 116 people were injured in Arad and 64 in Dimona, after ballistic missiles hit the region on Saturday.

Downward pressure:

Brent’s price gains were partly held back by expectations of some supply relief in the market.

The International Energy Agency’s (IEA) executive director Fatih Birol said the energy agency is prepared to release more crude stockpiles “if necessary,” Reuters reported.

Earlier this month, the IEA agreed to release 400 million bbls of crude oil from strategic reserves, as the conflict in Iran continues to destabilise oil flows through the Persian Gulf.

In another news, the total number of rigs drilling for crude oil in the US rose by two to 414 units last week, according to Baker Hughes.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.

By Tuhin Roy and Aparupa Mazumder

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