East of Suez Market Update 15 Jan

Prices in East of Suez ports have moved down, and LSMGO availability is good across several Omani ports.

IMAGE: Asyad Terminal in Duqm. Asyad Terminal

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

• VLSFO prices down in Fujairah ($9/mt), Zhoushan ($7/mt) and Singapore ($4/mt)
• LSMGO prices down in Fujairah ($11/mt), Singapore ($5/mt) and Zhoushan ($3/mt)
• HSFO prices down in Fujairah, Zhoushan ($5/mt) and Singapore ($2/mt)
• B30-VLSFO prices down in Singapore ($22/mt) and Fujairah ($18/mt)

VLSFO benchmarks across the three major Asian bunker ports have edged lower by $4–9/mt over the past day. Zhoushan’s VLSFO premiums over Singapore and Fujairah are currently assessed at $13/mt and $12/mt, respectively.

In Zhoushan, most suppliers are indicating lead times of around 5–7 days for all grades amid muted demand, only slightly narrower than last week's 5–8 days.

In Fujairah, prompt bunker availability remains tight across all grades, with several suppliers operating on constrained delivery schedules. Most suppliers continue to quote lead times of 5–7 days, although a few are still able to accommodate urgent stems at a premium, according to a source. Adverse weather is forecast in Fujairah between 15–17 January and 20–21 January, which is expected to disrupt bunker delivery operations.

Across Oman’s ports—Sohar, Salalah, Muscat and Duqm—bunker supply remains stable, with suppliers consistently offering LSMGO on prompt delivery windows.

Brent

The front-month ICE Brent contract has lost by $0.36/bbl on the day, to trade at $64.51/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has drawn support from the ongoing hostilities in the Middle East.

Conflict-related risks in Iran – a core OPEC member – have intensified after US President Donald Trump threatened action over Tehran’s crackdown on protesters.

“The US National Security Council is due to meet Tuesday to prepare options for the president,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Iran is the fourth-largest OPEC member, producing around 3.2 million b/d of crude oil.

“Oil prices are feeling the heat… on these supply disruption fears,” remarked Price Futures Group’s senior market analyst Phil Flynn.

Downward pressure:

Brent crude’s price retreated after the US Energy Information Administration (EIA) reported a sizeable increase in US crude stocks.

Commercial US crude oil inventories have increased by 3.4 million bbls to around 422 million bbls for the week ending 9 January, according to data from the EIA.

The EIA report was “relatively bearish” – marking the biggest increase in two months, according to Hynes.

A rise in US crude stocks can indicate lower demand for oil and put some downward pressure on Brent's price.

By Tuhin Roy and Aparupa Mazumder

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