East of Suez Market Update 13 May

Bunker fuel prices in East of Suez ports have moved in mixed directions, and availability across all grades has improved in Zhoushan.

IMAGE: Aerial view of Zhoushan, Zhejiang, China. Getty Images

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

• VLSFO prices up in Singapore ($9/mt), Zhoushan ($4/mt), and down in Fujairah ($3/mt)
• LSMGO prices up in Zhoushan ($45/mt), Singapore ($8/mt) and Fujairah ($6/mt)
• HSFO prices down in Singapore ($11/mt), Fujairah ($10/mt) and Zhoushan ($8/mt)
• B30-VLSFO price up in Singapore ($6/mt)

Singapore’s HSFO price has dropped in the past day, partly due to a lower-priced 150-500 mt stem fixed at the port. The benchmark is currently at discounts of $14/mt and $11/mt to Fujairah and Zhoushan, respectively.

VLSFO and HSFO availability in Singapore is very tight. Lead times of 12-14 days are recommended for VLSFO deliveries at the port. HSFO requires 9-14 days, while LSMGO needs 8-9 days.

In China’s Zhoushan port, VLSFO price has risen, while HSFO price has declined – widening the port’s Hi5 spread from $89/mt to $101/mt.

At $101/mt, Zhoushan’s Hi5 spread remains below Fujairah’s $194/mt and Singapore’s $147/mt.

Bunker fuel availability in Zhoushan has slightly improved this week, with lead times for all grades ranging between 4-7 days.

Brent

The front-month ICE Brent contract has gained by $0.43/bbl on the day, to trade at $107.32/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has continued to move higher as risks of oil supply disruptions in the Middle East remain elevated.

“Ten weeks on from the start of the Iran war and energy markets remain in limbo,” analysts from ING Bank noted.

Senior US and Chinese officials have reportedly agreed that no country should ​be allowed to collect shipping tolls to pass through the Strait of Hormuz, the US state department told Reuters.

This development has added upward pressure on oil prices as market analysts interpret it as a sign that Washington and Beijing are seeking common ground in efforts to pressure Tehran into relinquishing control over the strategic waterway.

“If Hormuz remains shut, the second quarter of 2026 will see the largest quarterly crude inventory drawdown in history at 6.5mb/d [6.5 million b/d],” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

While there are no significant downward pressures on Brent’s price today, market participants will closely watch the highly anticipated meeting between US President Donald Trump and Chinese President Xi Jinping during Trump's state visit to Beijing later this week.

The visit is expected to include talks focused on the evolving situation in the Middle East, while also helping pave the way for broader future cooperation.

Market analysts expect China to “use its influence” to persuade Iran closer towards a ceasefire deal, two analysts from ING Bank noted. “Clearly, this is easier said than done,” they added.

By Aparupa Mazumder

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