East of Suez Market Update 7 Apr
Most prices in East of Suez ports have moved up and availability is tight across grades in Fujairah.
IMAGE: Bunker barge at berth in Fujairah, UAE. Port of Fujairah
Changes on the day to 17.00 SGT (09.00 GMT) today:
- VLSFO prices up in Fujairah ($12/mt), Singapore ($5/mt) and unchanged in Zhoushan
- LSMGO prices up in Zhoushan ($282/mt), Singapore ($69/mt), and down in Fujairah ($60/mt)
- HSFO prices up in Fujairah ($33/mt), Singapore ($7/mt) and Zhoushan ($4/mt)
Fujairah’s HSFO price has increased by $33/mt over the past day, marking the sharpest rise among the three major Asian bunker ports. Despite this jump, the port’s HSFO still trades at a discount of $24/mt to Zhoushan and at a premium of $14/mt to Singapore.
Bunkering operations at the Port of Fujairah remain uninterrupted despite ongoing regional crisis. However, supply conditions are tight.
In the Port of Fujairah, bunkering is progressing, but prompt fuel availability remains tight amid "limited supply, strict scheduling, firm nominations, and possible delays in barge availability,” a Middle East-based trader said.
Authorities in Fujairah and Khor Fakkan Port issued navigational warnings after reports of intermittent GPS spoofing and signal jamming offshore. Such disruptions can lead to inaccurate positioning, erratic vessel movements, and misleading navigation data, prompting guidance for mariners to treat the area as high risk, according to Inchcape Shipping.
Most terminals and anchorages continue to operate either fully or partially without disruption. Fuel availability in Fujairah remains tight across all grades, with offers subject to firm enquiry.
Elsewhere in the UAE, operations at Jebel Ali Port, Hamriyah Port and Sharjah Port are proceeding normally. Petroleum terminals in Abu Dhabi, including Ruwais Port, are also functioning without interruption.
Ports in Ras Al Khaimah remain fully operational. However, earlier this month, RAK Ports Group introduced a marine risk surcharge for all vessels calling at its ports, harbours, anchorages and approaches, according to the shipping agency.
Brent
The front-month ICE Brent contract has gained by $1.47/bbl on the day, to trade at $109.36/bbl at 17.00 SGT (09.00 GMT) today.
Upward pressure:
Brent crude’s price has moved higher after US President Donald Trump set a new deadline for Iran to strike a deal and reopen the Strait of Hormuz.
“Oil prices rose after US President Donald Trump signalled that an escalation of strikes on Iran could come as soon as Tuesday,” two analysts from ING Bank noted.
Trump warned in a social media post that US forces will target power plants and bridges after 20:00 ET (00:00 GMT midnight) today if Washington’s demands are not met.
Oil prices gained, “renewing fears that oil flows through the Strait of Hormuz could remain constrained for longer,” ING Bank’s analysts added.
Downward pressure:
Brent’s price has felt some downward pull after eight members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) collectively agreed to increase oil output by 206,000 b/d in May.
The output hike decision comes amid the escalating US-Israeli conflict with Iran that has triggered repeated strikes on energy infrastructure across the Middle East and effectively choked off traffic through the Strait of Hormuz.
“OPEC+ raised output targets by 206k b/d [206,000 b/d] in May, a largely symbolic move as the war continues to constrain output and shipments from several key members,” ING Bank’s analysts added.
By Tuhin Roy and Aparupa Mazumder
Please get in touch with comments or additional info to news@engine.online
