East of Suez Market Update 30 Oct

Most prices in East of Suez ports have moved higher, and VLSFO lead times in Singapore now start at around 13 days.

IMAGE: Aerial view of Singapore container terminal. Getty Images

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

• VLSFO prices up in Zhoushan ($30/mt), Singapore ($28/mt) and Fujairah ($22/mt)
• HSFO prices up in Singapore ($24/mt), Fujairah ($18/mt) and Zhoushan ($17/mt)
• LSMGO prices up in Fujairah ($40/mt), Zhoushan ($12/mt), and down in Singapore ($11/mt)
• B30-VLSFO price up in Singapore ($25/mt)

Singapore’s VLSFO price has climbed by $28/mt to $1,002/mt, the second-steepest increase among the three major Asian bunker ports behind Zhoushan’s $30/mt. The price now stands at a $12/mt premium over Fujairah and a $3/mt premium over Zhoushan.

The monthly averages point the same way. Singapore’s VLSFO price has averaged $920/mt in October to date, up from $865/mt in September and $815/mt in August. The October average sits within $3/mt of March’s $923/mt, the highest monthly average since July 2022, and is almost double the $461/mt average of October last year.

Singapore’s HSFO price has climbed by $24/mt to $906/mt, the steepest increase among the three ports. The grade has averaged $840/mt in October to date, up from $700/mt in September and $537/mt in July, the highest monthly average since November 2021.

Singapore’s Hi5 spread has widened from $92/mt yesterday to $96/mt today, moving above Zhoushan’s $82/mt and below Fujairah’s $226/mt. On monthly averages, the spread has narrowed from $165/mt in September to $80/mt in October.

Bunker fuel availability remains tight in Singapore, with constrained fuel oil inventories. Reduced supply flows and tightening inventories across East of Suez continue to constrain fuel availability at the port.

VLSFO lead times start at around 13 days, compared with 12-15 days last week, and some suppliers recommend more than three weeks. HSFO lead times are around 10 days but stretch to as long as three weeks, almost unchanged from last week. LSMGO needs 9-11 days, compared with 7-14 days last week.

Brent

The front-month ICE Brent contract has gained by $3.05/bbl on the day, to trade at $116.54/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has gained support following fresh attacks on oil tankers in the Strait of Hormuz and Saudi energy facilities.

A tanker was struck by an unknown projectile while completing an outbound transit of the Strait of Hormuz yesterday, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.

Separately, another vessel was reportedly set ablaze about 25 nautical miles northeast of Khasab, Oman. The cause of the fire remains unknown.

Meanwhile, Yemen’s Iran-aligned Houthi militants claimed responsibility for attacks on several sites in Saudi Arabia yesterday, including the Ras Tanura and Rabigh refineries and the Abqaiq oil processing facility.

Downward pressure:

Brent futures' gains have been capped by some signs of diplomatic progress in the Middle East.

Diplomatic efforts to end the conflict have “intensified”, ANZ Bank’s senior commodity strategist Daniel Hynes said, after US Vice President JD Vance reached out to Mohsen Rezaee, secretary of Iran’s National Security Council.

Iran received a letter from Vance but has not yet responded, Reuters reported citing Iran’s semi-official Tasnim News Agency.

By Tuhin Roy and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online