East of Suez Market Update 29 Apr

Most prices in East of Suez ports have moved up, and VLSFO availability is tight in Zhoushan.

IMAGE: Container ship at Colombo port, Sri Lanka. Getty Images

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

• VLSFO prices up in Zhoushan ($52/mt), Fujairah ($19/mt) and Singapore ($12/mt)
• LSMGO prices up in Zhoushan ($39/mt), Fujairah ($36/mt), and down in Singapore ($4/mt)
• HSFO prices up in Fujairah ($65/mt), Zhoushan ($20/mt) and Singapore ($15/mt)
• B30-VLSFO prices up in Singapore ($12/mt)

Zhoushan's VLSFO benchmark has recorded the sharpest jump among Asia’s key bunker hubs, climbing by $52/mt in the past day. This surge has reversed its pricing position against Singapore—shifting from a $26/mt discount to a $14/mt premium. Its discount to Fujairah has narrowed by $33/mt to $70/mt.

Bunker supply in Zhoushan has tightened, with several suppliers now advising lead times of 8–10 days, compared to 3–7 days just a week earlier.

Across India, VLSFO availability remains constrained at several ports including Kandla, Sikka, Hazira and New Mangalore, where lead times are hovering around 6–7 days.

In contrast, Sri Lanka presents a more comfortable supply picture. Both Colombo and Hambantota are well-stocked across all fuel grades, with one supplier able to offer prompt deliveries.

Brent

The front-month ICE Brent contract has gained by $3.66/bbl on the day, to trade at $114.70/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has continued to trade higher amid persistent blockade of the Strait of Hormuz.

US President Donald Trump has ordered an extension of the Hormuz ​blockade, the Wall Street Journal reported citing officials.

Meanwhile, more than 20 Iranian oil tankers were diverted and anchored at Iran's Port of Chah Bahar yesterday, outside the Strait of Hormuz, US Central Command (CENTCOM) reported.

The vessel backlog between the Strait of Hormuz and the US blockade line indicates that Washington has succeeded in intercepting Iranian vessels, according to market analysts.

“Crude oil extended recent gains, as the market frets over the ongoing closure of the Strait of Hormuz,” ANZ Bank’s senior commodity strategist Daniel Hynes said. “Stalled peace talks have raised the prospect of an indefinite disruption to oil supplies from the Persian Gulf,” he added.

Downward pressure:

The UAE will exit OPEC and OPEC+ from 1 May, the country's energy minister Suhail Al Mazrouei said in a statement yesterday.

The UAE’s national oil company, Abu Dhabi National Oil Company (ADNOC) has set a target to raise crude oil production capacity to 5 million b/d by 2027.

“The UAE’s exit from OPEC is a big blow to the group,” two analysts from ING Bank noted. “It’s the highest-profile exit from OPEC in recent years,” they said.

The UAE’s oil output is currently capped at 3.41 million b/d under the OPEC+ quota system.

“In the short term, this development has little impact on the market. But in the medium to longer term, it means more supply for the market,” ING Bank’s analysts noted.

By Tuhin Roy and Aparupa Mazumder

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