East of Suez Market Update 17 Apr

Most prices in East of Suez ports have moved up, and LSMGO availability is good in Omani ports.

IMAGE: An aerial view of Sohar Port and Freezone. Sohar Port and Freezone

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

• VLSFO prices up in Zhoushan ($10/mt), Singapore and Fujairah ($2/mt)
• LSMGO prices up in Zhoushan ($18/mt), and down in Singapore ($85/mt) and Fujairah ($7/mt)
• HSFO prices up in Singapore ($14/mt), Fujairah ($7/mt) and Zhoushan ($6/mt)
• B30-VLSFO price up in Singapore ($14/mt)

Zhoushan’s LSMGO price has increased by $18/mt over the past day, while prices in Singapore and Fujairah have declined. Despite the uptick, Zhoushan’s LSMGO remains at a discount of $50/mt to Fujairah, but at a premium of $99/mt over Singapore.

In Zhoushan, LSMGO availability continues to be steady, with most suppliers recommending lead times of 3–7 days, compared with 5–7 days earlier in the week, a trader said.

Bunkering operations at the Port of Fujairah are proceeding without disruption despite ongoing regional tensions, although supply remains tight.

“Avails [are] ok as of now [in Fujairah], all offers are subject to firm inquiry,” a Middle East-based trader said.

In Oman, all ports are fully operational. LSMGO availability is good in Muscat, Duqm and Sohar, with prompt lead times, according to a source.

Brent

The front-month ICE Brent contract has gained by $1.13/bbl on the day, to trade at $97.45/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price is poised to end the week near $100/bbl as the Strait of Hormuz continues to remain closed indefinitely.

Earlier this week, the US Central Command (CENTCOM) said a blockade of Iranian ports has been fully implemented.

Iran reacted to the news with fresh threats of disrupting global shipping routes beyond the Strait of Hormuz, including the Persian Gulf, Gulf of Oman, and the Red Sea.

“Oil flows through the Strait of Hormuz remain largely cut off, which continues to tighten the oil market,” ING Bank’s head of commodities strategy Warren Patterson said.

Downward pressure:

US President Donald Trump said a deal between Washington and Tehran could be reached soon, capping some of Brent’s gains today.

Trump told reporters that Iran had agreed to a potential nuclear deal, signalling further rounds of talks between the two sides.

“We have a lot of agreement with Iran, and I think something is going to happen very positive,” Trump said.

“The futures market appears to be responding more to headlines over how the war may evolve, with hopes that we could see a resolution in the coming weeks,” Patterson added.

By Tuhin Roy and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online