East of Suez Market Update 28 Nov

Prices in East of Suez ports have moved in mixed directions, and LSMGO availability is good across several Omani ports.

IMAGE: Cargo terminal at the Port of Singapore. Getty Images

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

• VLSFO prices up in Singapore, Fujairah ($2/mt) and Zhoushan ($1/mt)
• LSMGO prices up in Fujairah ($8/mt) and Zhoushan ($4/mt), and down in Singapore ($14/mt)
• HSFO prices up in Zhoushan ($3/mt), and unchanged in Singapore and Fujairah
• B30-VLSFO at a $255/mt premium over VLSFO in Singapore
• B30-VLSFO at a $280/mt premium over VLSFO in Fujairah

VLSFO prices in the three major Asian bunker ports have moved within a narrow range in the past day, with no major deviations. Singapore’s VLSFO price stands at a significant discount of $28/mt to Zhoushan and is near parity with Fujairah.

Singapore’s LSMGO price has declined by $14/mt, while Fujairah and Zhoushan’s benchmarks have increased. Singapore's LSMGO is a slight premium of $5/mt over Zhoushan but at a discount of $10/mt to Fujairah.

VLSFO lead times in Singapore remain uneven, stretching from about five days to as long as 11 days — compared to last week’s 2–10 days. HSFO availability is steady, with suppliers still asking for 6–9 days’ notice, while LSMGO requirements hold unchanged at 2–8 days.

LSMGO supply in Oman’s ports — Sohar, Salalah, Muscat and Duqm — remain stable, with prompt deliveries available.

Brent

The front-month ICE Brent contract has gained by $0.35/bbl on the day, to trade at $63.50/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Oil prices have found support amid prolonged efforts toward a Russia-Ukraine peace framework, with ongoing talks keeping geopolitical risk elevated.

President Vladimir Putin said on Thursday that draft peace proposals discussed by the US and Ukraine could form the basis for future agreements to end the conflict but added that Russia would continue fighting if they do not, according to Reuters.

“President Putin said overnight that the US plan could prove the basis for a deal but that some points require discussion,” ANZ Bank senior commodity strategist Daniel Hynes noted.

Brent futures have also been lifted by growing expectations that the US Federal Reserve will cut interest rates next month, a shift that could spur economic growth and support energy demand.

Market watchers are also watching Sunday’s OPEC+ meeting for any signals on potential output changes.

Downward pressure:

The US Energy Information Administration (EIA) reported a sharp rise in crude inventories, tempering some of Brent’s gains today.

Commercial crude stocks climbed by 2.8 million bbls to 427 million bbls for the week ending 21 November, according to EIA data.

By Tuhin Roy

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