East of Suez Market Update 9 Nov

Most regional benchmarks have declined, and VLSFO availability in Fujairah has improved.

IMAGE: Bunker barge at berth in Fujairah, UAE. Port of Fujairah

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

• VLSFO prices down in Fujairah ($25/mt), Zhoushan ($14/mt) and Singapore ($3/mt)
• LSMGO prices up in Singapore ($16/mt), Fujairah ($10/mt), and down in Zhoushan ($25/mt)
• HSFO prices unchanged in Zhoushan, and down in Fujairah ($75/mt) and Singapore ($46/mt)

Fujairah’s HSFO price has recorded the steepest decline amongst the three major Asian bunker ports over the weekend. The port now stands at a $132/mt discount to Zhoushan and a $67/mt discount to Singapore.

Fujairah’s VLSFO price has dropped by a smaller margin than its HSFO price. Consequently, the port’s Hi5 spread has widened from $178/mt, to $228/mt. It remains above Singapore’s $161/mt and Zhoushan’s $69/mt.

VLSFO supply in Fujairah has improved, even as vessel traffic through the Strait of Hormuz continues to be disrupted amid US-Iran tensions, a regional source said. Supplies of LSMGO and HSFO in the port remain limited.

In Zhoushan, VLSFO and LSMGO prices have declined over the weekend.

Zhoushan’s VLSFO price now stands at a discount of $27/mt to both Singapore and Fujairah.

VLSFO and HSFO availability remains tight in Zhoushan, despite subdued demand.

Brent

The front-month ICE Brent contract has fallen by $1.12/bbl on the day from Friday, to trade at $96.54/bbl at 09.00 GMT.

Upward pressure:

Brent futures have gained some support from ongoing attacks on vessels in the Strait of Hormuz. Yemen-based Houthi rebels have claimed responsibility for Sunday's an attack on Saudi state-owned oil company Aramco’s building in Riyadh, Reuters reported.

Additionally, commercial crude stocks in the US fell by 865,000 bbls to 409.8 million bbls in the week ended 30 October, according to the US Energy Information Administration (EIA).

Downward pressure

Brent’s price has declined following recent remarks by US President Donald Trump.

On Sunday, Trump said that he was 'highly unlikely' to order fresh strikes on Iran, if talks to resolve the US-Iran conflict continues, Reuters reported.

Expectations of a possible de-escalation in the conflict have kept oil prices under pressure, following election losses for Trump's party.

“Vice President Vance attributed the Republican losses to the conflict with Iran, while Democrats Schumer and Jeffries pledged to end the war,” said ANZ Bank senior commodity strategist Daniel Hynes.

By Shilpa Sharma

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