East of Suez Market Update 17 Dec

Bunker prices in East of Suez ports have moved in mixed directions, and VLSFO availability 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 Zhoushan, Fujairah ($3/mt) and Singapore ($1/mt)
• LSMGO prices up in Fujairah ($8/mt), Zhoushan ($3/mt), and down in Singapore ($7/mt)
• HSFO prices up in Fujairah ($2/mt), unchanged in Zhoushan, and down in Singapore ($2/mt)
• B30-VLSFO at a $267/mt premium over VLSFO in Singapore
• B30-VLSFO at a $280/mt premium over VLSFO in Fujairah

Most bunker fuel grades across East of Suez ports have tracked Brent’s upward movement, although Singapore’s VLSFO and LSMGO prices have bucked the trend.

Singapore’s LSMGO price has fallen by $7/mt in the past day – bringing the port’s LSMGO price to a discount of $89/mt to Fujairah and $30/mt to Zhoushan.

Bunker fuel availability in Singapore is very tight this week, with recommended lead times of around 10 days for VLSFO. VLSFO availability is expected to improve after 21 December.

LSMGO and HSFO also require similar advance notice for delivery in Singapore. Only a handful of suppliers can offer small HSFO parcels in Singapore, a source said.

At Malaysia’s Port Klang, both VLSFO and LSMGO remain easy to secure — particularly for smaller prompt orders — while HSFO continues to face limited availability.

Brent

The front-month ICE Brent contract has gained by $0.47/bbl on the day, to trade at $60.30/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has erased earlier losses and climbed back above the $60/bbl mark after Washington tightened sanctions on Venezuela.

US President Donald Trump has declared a complete ban on sanctioned oil tankers carrying Venezuelan oil.

Washington has “positioned warships, aircraft and troops near Venezuela’s coast,” according to ANZ Bank’s senior commodity strategist Daniel Hynes.

The development comes amid heightened tension between the two oil-producing nations after the US intercepted a sanctioned oil tanker off Venezuela’s coast and sanctioned six additional vessels accused of carrying Venezuelan oil last week.

“Crude futures were staging modest gains… after US President Donald Trump designated the Venezuelan government a 'terrorist organisation'," remarked VANDA Insights’ founder Vandana Hari.

Downward pressure:

Brent’s gains have been capped by progress in Russia-Ukraine ceasefire talks, as market analysts say a deal could ease energy-related sanctions on Moscow and return additional barrels to a global market already facing oversupply concerns.

Ukrainian President Volodymyr Zelensky said earlier this week that peace talks with the US had made progress and that an agreement could be reached soon, according to media reports.

“The end to the Russia-Ukraine war brings with it the prospect of Russian crude flowing onto a market that is already seeing rising supply from major producers such as OPEC,” Hynes said.

By Aparupa Mazumder

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