East of Suez Market Update 24 Mar

Prices in East of Suez ports have declined, while availability remains tight across all grades in Singapore.

IMAGE: Container ships with working crane bridge in Singapore. Getty Images

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

• VLSFO prices down in Singapore ($125/mt), Zhoushan ($91/mt) and Fujairah ($73/mt)
• LSMGO prices down in Zhoushan ($164/mt), Fujairah ($77/mt) and Singapore ($75/mt)
• HSFO prices down in Fujairah ($57/mt), Singapore ($52/mt) and Zhoushan ($10/mt)
• B30-VLSFO prices down in Singapore ($144/mt)

VLSFO prices across the three key Asian bunker hubs have declined by $73–125/mt over the past day, with Singapore recording the sharpest drop. The port’s VLSFO benchmark is now priced at notable discounts of $202/mt to Fujairah and $59/mt to Zhoushan.

Singapore’s HSFO price has fallen by $52/mt, though the drop was less pronounced than that of VLSFO. As a result, the port’s Hi5 spread has narrowed by $73/mt to $165/mt, positioning it below Fujairah’s $250/mt but still above Zhoushan’s $131/mt.

Prompt supply remains tight for VLSFO in Singapore, with recommended lead times of 8–11 days. HSFO availability continues to be constrained as well, with lead times of 9–16 days, largely unchanged from the previous week.

Lead times for LSMGO have widened, shifting from 6–9 days last week to 5–12 days now.

At Port Klang, VLSFO availability remains relatively stable, particularly for smaller prompt stems. However, LSMGO supply has tightened, and HSFO availability continues to be limited, making both grades increasingly difficult to secure.

Brent

The front-month ICE Brent contract has lost by $11.52/bbl on the day, to trade at $101.81/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent’s price has traded north of $100/bbl in the fourth week of the Middle East conflict, supported by the ongoing strikes on energy infrastructure.

OPEC’s de-facto leader Saudi Arabia’s Ministry of Defense posted on social media platform X that it intercepted a series of drone attacks targeted toward its Eastern Province – where the Kingdom’s major oil fields and refineries are located.

Meanwhile, Iran has rejected the idea of engaging in direct negotiations with Washington or reopening the Strait of Hormuz for commercial vessels.

Brent’s price has climbed “amid reports that Saudi Arabia and the UAE have taken steps toward joining the conflict, raising the risk of escalation,” two analysts from ING Bank said.

Downward pressure:

Brent crude’s price has lost over $10/bbl after US President Donald Trump claimed that Washington would delay strikes on Iran’s power plants and energy infrastructure anytime soon.

Oil market participants have interpreted Trump’s comments as a sign of easing in the Middle East crisis.

“Oil prices saw one of their sharpest intraday swings on record… after President Donald Trump signalled a potential de‑escalation with Iran,” ING Bank’s analysts said.

Additionally, Japan will start releasing oil from its strategic reserve by the end of March, Reuters reported citing the country’s Prime Minister Sanae Takaichi.

Japan ​will contribute about 80 million bbls, coordinated ​by the International Energy Agency (IEA).

“We began releasing ​privately held ⁠reserves on March 16, and will begin releasing national reserves from the 26th,” Reuters cited Takaichi as saying.

By Tuhin Roy and Aparupa Mazumder

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