East of Suez Market Update 25 Mar

Prices in East of Suez ports have moved down, and availability is tight across all grades in Fujairah.

IMAGE: Bunker barge at berth in Fujairah, UAE. Port of Fujairah

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

• VLSFO prices down in Fujairah ($141/mt), Zhoushan ($102/mt) and Singapore ($45/mt)
• LSMGO prices down in Fujairah ($126/mt), Singapore ($53/mt) and Zhoushan ($26/mt)
• HSFO prices down in Zhoushan ($98/mt), Fujairah ($48/mt) and Singapore ($34/mt)
• B30-VLSFO prices down in Singapore ($6/mt)

VLSFO benchmarks across the three major Asian bunker ports have declined sharply by $45–141/mt over the past day, dropping below the $1,000/mt mark. The fall follows Brent crude slipping under $100/bbl, driven by signs of de-escalation in the Middle East and a build in US crude inventories.

Fujairah has recorded the steepest drop in VLSFO prices, though it still trades at notable premiums of $106/mt over Singapore and $104/mt over Zhoushan.

Despite ongoing regional instability, bunkering activity in Fujairah continues, even after repeated attacks in recent weeks, a source said.

Authorities in Fujairah and Khor Fakkan have not issued official alerts, but navigational warnings have been circulated after reports of intermittent GPS spoofing and signal jamming offshore. These disruptions can result in inaccurate positioning, erratic vessel movements and misleading navigational data, prompting guidance for mariners to treat the area as high risk, according to Inchcape Shipping.

Fuel availability in Fujairah remains tight across all grades, with offers subject to firm enquiry, a trader noted. Bunkering continues “depending on the port and booking conditions, though delays are possible due to vessel rerouting and port congestion,” another source said.

Brent

The front-month ICE Brent contract has lost by $3.01/bbl on the day, to trade at $98.80/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent’s price has felt some upward pressure as concerns over supply disruptions persist.

Iranian drones targeted a ​fuel tank ‌at Kuwait International Airport earlier today, ​causing a ​fire, ​Reuters reported citing Kuwait's Civil Aviation ​Authority.

The US Pentagon is preparing to deploy more military units to the Middle East, amid warnings of a possible escalation with Lebanon-based Hezbollah militant group.

Washington will deploy “around 2,000 troops from the 82nd Airborne Division to the region, underscoring the risk of further escalation,” two analysts from ING Bank said.

Downward pressure:

Brent crude’s price has declined past the $100/bbl mark after the American Petroleum Institute (API) reported a surge in US crude stocks.

US crude oil inventories rose by 2.3 bbls in the week ending 20 March, according to API estimates.

A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.

There is also news of some de-escalation in the Middle East, that has put downward pressure on Brent’s price today.

Washington has put forward a 15-point ceasefire plan to Iran that could open the door to a month-long truce, according to media reports.

“Oil prices fell sharply on reports of renewed ceasefire efforts, with Brent sinking as much as 7% toward $97/bbl,” ING Bank’s analysts noted.

Iran has notified the United Nations Security Council (UNSC) and the International Maritime ​Organization (IMO) that “non-hostile” vessels are allowed to transit the Strait of Hormuz.

“Iran also reiterated that foreign ships can transit the Strait of Hormuz only if they comply with Tehran’s regulations and are not supporting acts of aggression,” the two ING Analysts added.

By Tuhin Roy and Aparupa Mazumder

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