East of Suez Market Update 27 Apr

Most bunker prices in East of Suez ports have increased, and VLSFO supply remains stable in Singapore.

IMAGE: Aerial view of Singapore container terminal. Getty Images

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

• VLSFO prices up in Fujairah ($14/mt), Zhoushan ($9/mt) and Singapore ($7/mt)
• LSMGO prices up in Fujairah ($107/mt), Zhoushan ($96/mt) and Singapore ($9/mt)
• HSFO prices up in Fujairah ($26/mt) and Singapore ($9/mt), and down in Zhoushan ($3/mt)
• B30-VLSFO price down in Singapore ($11/mt)

VLSFO prices have increased across the three main East of Suez ports, with Fujairah seeing the sharpest rise. Fujairah’s HSFO price has risen more than its VLSFO benchmark, thereby narrowing the port’s Hi5 spread by $12/mt to $152/mt. However, it is still well above Zhoushan’s $69/mt and Singapore’s $85/mt.

Bunkering is progressing in all UAE ports without any disruptions, according to container shipping company A.P. Moller-Maersk.

Bunker prices in Singapore across all grades have increased some over the weekend.

VLSFO lead times in Singapore remain broadly stable at 5-12 days, while HSFO requires 5-10 days, a trader said. LSMGO lead times continue to hold steady at 2-7 days.

Brent

The front-month ICE Brent contract has increased by $1.41/bbl on the day from Friday, to trade at $107.70/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent’s price has risen, inching towards $108/bbl, as peace talks between US and Iran remain stalled and vessel movement through the Strait of Hormuz remains restricted.

Hopes of reviving negotiations between the two countries faded over the weekend after US President Donald Trump cancelled his envoys Steve Witkoff and Jared Kushner’s planned visit to Islamabad on Saturday.

Meanwhile, Iran’s Foreign Minister Abbas Araqchi met mediators in Oman and Pakistan before travelling to Russia.

“Embarking on timely tour of Islamabad, Muscat, and Moscow. Purpose of my visits is to closely coordinate with our partners on bilateral matters and consult on regional developments,” Araqchi said in a social media post on Friday.

Separately, the US has vowed to continue blockading ships doing business with Iran as they pass through the Strait of Hormuz.

“That blockade is ongoing and continues to become more effective and stronger,” US secretary of war Pete Hegseth said during a press briefing on Friday.

Downward pressure:

Brent’s price felt some downward pressure following an increase in the US crude oil stocks.

Commercial US crude oil inventories increased by 1.9 million bbls to about 466 million bbls in the week ending 17 April, according to data from the US Energy Information Administration (EIA).

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

By Shilpa Sharma

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