East of Suez Market Update 11 Mar

Bunker fuel prices in East of Suez ports have moved in mixed directions, and availability across all grades is tight in Singapore.

IMAGE: Bunker delivery in Singapore. Getty Images

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

• VLSFO prices up in Fujairah ($154/mt), Singapore ($32/mt), and down in Zhoushan ($7/mt)
• LSMGO prices up in Fujairah ($180/mt), Zhoushan ($22/mt), and down in Singapore ($60/mt)
• HSFO prices up in Fujairah ($20/mt), Zhoushan ($8/mt), and down in Singapore ($9/mt)

Fujairah's VLSFO price has risen sharply in the past day. The UAE port’s VLSFO price currently stands at premiums of $118/mt and $123/mt over Singapore and Zhoushan, respectively.

Bunkering activity in Fujairah and Khor Fakkan currently faces uncertainty over loadings due to the ongoing conflict in the Middle East.

Several suppliers in the region have ceased deliveries as some terminals remain closed due to cross-border airstrikes. Only a limited number of suppliers are issuing price quotes for deliveries in Fujairah, according to a source.

Singapore’s VLSFO price has also increased over the past day, driven by a higher-priced 500–1,500 mt stem fixed in the port.

VLSFO requires lead times of around 12-16 days in Singapore, up from 7-11 days last week. LSMGO needs around 13-17 days for delivery, compared with 4-11 days in the previous week, according to another source.

Brent

The front-month ICE Brent contract has declined by $1.81/bbl on the day, to trade at $91.00/bbl, at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent’s price has felt some upward pressure after the American Petroleum Institute (API) reported a draw in US crude stocks, partially offsetting a 17-million-bbl surge over the last two weeks.

In contrast, market participants had expected a 1.4-million-bbl build.

A drop in US crude stocks can indicate higher demand for oil and put some upward pressure on Brent's price.

Reports that Iran has laid naval mines in the Strait of Hormuz have supported Brent’s price today.

The US army has reportedly destroyed multiple Iranian vessels and 16 minelayers, according to a video posted by the US Central Command (CENTCOM) on social media platform X.

“The return of oil flows through the Strait of Hormuz remains crucial. The longer flows remain constrained, the more upstream oil production will be shut in,” two analysts from ING Bank noted.

Downward pressure:

On Monday, US President Donald Trump said that the conflict could end before four weeks – as previously expected. Brent’s price has shed following this development.

Brent receded after “President Trump suggested that the war would end soon,” ING Bank’s analysts said.

The Group of Seven (G7) developed countries refrained from committing a joint release of oil from emergency reserves yesterday.

However, the International Energy Agency’s (IEA) executive director Fatih Birol said that representatives from the IEA member governments will meet for a second round of discussions later today.

“There are reports that the group will meet again today and could agree on a coordinated release of 300-400m barrels [300-400 million bbls],” ING Bank’s analysts added.

IEA member countries currently hold over 1.2 billion bbls of public emergency oil stocks, with another 600 million bbls of industry stocks held under government obligation, Birol said in a statement.

“The mere suggestion of this release has helped ease prices,” the two ING analysts added.

By Aparupa Mazumder

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