East of Suez Market Update 12 Jan

Prices in East of Suez ports have moved in mixed directions and availability of all grades is good in Zhoushan.

IMAGE: An aerial view of Taichung Port. Taiwan Free Trade Zone 1

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

• VLSFO prices up in Singapore ($2/mt), and unchanged in Fujairah and Zhoushan
• LSMGO prices up in Singapore ($12/mt), unchanged in Zhoushan, and down in Fujairah ($13/mt)
• HSFO prices up in Zhoushan ($4/mt), and down in Fujairah ($3/mt) and Singapore ($2/mt)
• B30-VLSFO prices up in Fujairah ($6/mt) and down in Singapore ($5/mt)

VLSFO prices across the three major Asian bunker hubs have remained largely stable over the weekend. Zhoushan continues to command strong premiums, standing at $36/mt over Fujairah and $29/mt over Singapore.

In Zhoushan, most suppliers are quoting lead times of 5–7 days for all grades amid muted demand, broadly unchanged from 5–8 days last week.

In Taiwan, bunker lead times at Keelung, Kaohsiung and Hualien remain steady at two days, the same as last week, while suppliers in Taichung are recommending slightly longer lead times of around three days.

Meanwhile, in Australia, vessel movements have resumed at North Queensland ports after Tropical Cyclone Koji passed. The ports of Townsville, Mourilyan and Lucinda have been open since yesterday. However, Abbot Point remains at red alert, with anchorages and pilotage areas still closed, according to GAC Hot Port News.

Brent

The front-month ICE Brent contract has gained by $0.72/bbl on the day from Friday, to trade at $63.20/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has rallied due to growing geopolitical unrest in the Middle East.

Oil market analysts are concerned that the ongoing protests in Iran, that began two weeks ago, could threaten oil supply.

“Protests [in Iran] have continued for more than a week amid concerns of a collapse in the local economy,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

The OPEC member pumps around 3.2 million b/d of crude oil, making it the fourth-largest producer of the group.

“The situation puts at least 1.9mb/d [1.9 million b/d] of oil exports at risk of disruption,” Hynes added.

Downward pressure:

Venezuela is expected to resume oil exports soon, Reuters reported. This news has put some downward pressure on Brent’s price today.

Last week, US President Donald Trump said Venezuela’s interim administration would be “turning over” between 30 million to 50 million bbls of sanctioned oil to be sold at market price.

The end of Maduro presidency in Venezuela could add fresh barrels to an already oversupplied market, according to analysts.

“US Treasury Secretary Scott Bessent has said that further sanctions against Venezuela may be lifted as early as this week to facilitate oil sales,” two analysts from ING Bank added.

By Tuhin Roy and Aparupa Mazumder

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