East of Suez Market Update 7 Oct

Prices in East of Suez ports have risen across all grades, and availability is tight for VLSFO and HSFO in Singapore.

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

• VLSFO prices up in Fujairah, Singapore ($44/mt) and Zhoushan ($43/mt)
• LSMGO prices up in Zhoushan ($57/mt), Singapore ($47/mt) and Fujairah ($39/mt)
• HSFO prices up in Zhoushan ($48/mt), Singapore ($42/mt) and Fujairah ($19/mt)

Singapore's VLSFO price has climbed by $44/mt, in line with Fujairah's gain and just ahead of Zhoushan's $43/mt. Singapore's LSMGO price has risen by $47/mt and HSFO by $42/mt, taking them to $1,296/mt and $790/mt respectively. Singapore's VLSFO price now stands at $904/mt, an $82/mt discount to Fujairah and a $23/mt discount to Zhoushan.

Singapore's VLSFO monthly average price rose from $744/mt in July to $865/mt in September, the highest since March's $923/mt. It was up about 77% from the $489/mt recorded in September 2025, while the October average so far is higher still at $872/mt.

HSFO climbed faster, from a monthly average of $537/mt in July to $700/mt in September. October’s average so far, at $755/mt, is the highest monthly average in the series since November 2021, more than double December 2025’s low of $352/mt.

Singapore's bunker market remains tight even though demand is average, with advised VLSFO lead times holding at around 10-15 days, unchanged from last week. Most suppliers are running low on stocks and cargo arrivals are delayed by the conflict in the Middle East, a Singapore-based source said.

Advised HSFO lead times are also 10-15 days, broadly flat week on week, pointing to similarly constrained supply. LSMGO is in relatively healthy supply, though lead times have edged up to 5-7 days from around five days previously.

In Port Klang, Malaysia, availability is constrained across several grades. Prompt VLSFO supply is especially tight, LSMGO is limited and HSFO supply remains under pressure.

Brent

The front-month ICE Brent contract has gained by $2.60/bbl on the day, to trade at $101.60/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has remained above $100/bbl as supply risks from the Persian Gulf continue to linger amid ongoing attacks on commercial vessels.

“Oil supplies from the Persian Gulf continue to improve. Yet the market is reluctant to get too carried away given that supply risks from the region remain elevated,” two analysts from ING Bank noted.

An oil tanker was struck by an unknown projectile within the Persian Gulf on Monday, while attempting an outbound transit, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.

“There is a clear tug-of-war at the moment between improving supply from the region and lingering threats to supply,” ING Bank’s analysts said.

Downward pressure:

Brent's gains were capped as Persian Gulf crude output showed signs of recovery, with regional operators adapting to the shifting geopolitical landscape.

Kuwait is reportedly producing at 75% of pre-war levels, Bloomberg reported, citing Kuwait Petroleum Corporation (KPC) chief executive Sheikh Nawaf Saud Al-Sabah.

Saudi Arabia has also reduced the official selling price (OSP) of the Arab Light to Asia for November loadings, Reuters reported.

“Iraq is hiring additional vessels to send oil through Hormuz”, a sign of an improving supply conditions, ANZ Bank’s senior commodity strategist Daniel Hynes said.

By Tuhin Roy and Aparupa Mazumder

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