East of Suez Market Update 28 Jan

Prices in East of Suez ports have moved up, and prompt bunker supply is tight across all grades in Fujairah.

IMAGE: A container vessel in Oman's Sohar port. Asyad Group

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

• VLSFO prices up in Fujairah ($23/mt), Zhoushan ($14/mt) and Singapore ($13/mt)
• LSMGO prices up in Fujairah ($26/mt), Zhoushan ($21/mt) and Singapore ($15/mt)
• HSFO prices up in Fujairah ($29/mt), Zhoushan ($19/mt) and Singapore ($14/mt)
• B30-VLSFO prices up in Fujairah ($32/mt) and Singapore ($28/mt)

Fujairah’s VLSFO price has climbed by $23/mt, the sharpest increase among the three major Asian bunker ports. A higher-priced VLSFO stem fixed in the port has contributed to pushing the benchmark up. Even after this jump, Fujairah’s VLSFO remains discounted by $32/mt and $7/mt compared with Zhoushan and Singapore, respectively.

Fujairah’s LSMGO price has also risen by $26/mt, again the steepest move among the three ports. The port’s LSMGO premiums over Singapore and Zhoushan now stand at $107/mt and $71/mt, respectively.

Prompt bunker supply in Fujairah remains tight across all fuel grades, with several suppliers operating on restricted delivery schedules. Most suppliers continue to quote lead times of 5–7 days, although some can arrange urgent stems at a premium, according to a source. Supply tightness is also being reported at Khor Fakkan.

In contrast, bunker availability across Oman’s ports—Sohar, Salalah, Muscat and Duqm—remains stable, with suppliers consistently offering LSMGO for prompt deliveries.

Brent

The front-month ICE Brent contract has moved $2.50/bbl higher on the day, to trade at $67.77/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

US crude oil production and exports have been majorly disrupted this week due to harsh winter storms. This has supported Brent’s price.

US refiners have lost 2 million b/d, or about 15% of the country's total output over the weekend, Reuters reported.

“A winter storm in the US has disrupted refineries on the Gulf Coast and elsewhere,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Meanwhile, a weaker US dollar has lent further support. The dollar is trading close to a four-year low against major currencies, Reuters reported.

This slide is making dollar-priced commodities such as crude oil more affordable for holders of other currencies.

Downward pressure:

Brent crude has felt some downward pressure after Kazakhstan said that output at the Tengiz oilfield – one of the OPEC+ member’s largest crude oil production sites – will resume full production within a week, according to Reuters.

“Kazakhstan’s oil output is set to recover, with Tengizchevroil restoring power to its Tengiz field,” two analysts from ING Bank said.

Besides, Kazakhstan’s pipeline operator Caspian Pipeline Consortium (CPC) said it has restored full loading capacity at its Black Sea terminal after completing maintenance work at one of its three mooring points that was hit by Ukrainian drones.

By Tuhin Roy and Aparupa Mazumder

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