East of Suez Market Update 22 Jan

Most prices in East of Suez ports have moved up, and VLSFO availability is tight in Zhoushan.

IMAGE: Ships and cranes at the port of Dalian, China. Getty Images

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

• VLSFO prices up in Singapore ($6/mt), Fujairah ($4/mt) and Zhoushan ($2/mt)
• LSMGO prices up in Singapore ($15/mt) and Zhoushan ($8/mt), and unchanged in Fujairah
• HSFO prices up in Zhoushan ($21/mt), Singapore and Fujairah ($6/mt)
• B30-VLSFO prices up in Singapore and Fujairah ($1/mt)

VLSFO prices at the three major Asian bunker ports have edged up by a modest $2–6/mt over the past day. Zhoushan continues to command notable VLSFO premiums, standing $32/mt above Fujairah and $20/mt above Singapore.

Zhoushan’s HSFO price has jumped by $21/mt, marking the sharpest increase among the three ports. This has widened Zhoushan’s HSFO premiums over Fujairah and Singapore by $15/mt each, to $48/mt and $29/mt, respectively.

Because HSFO prices have risen sharper than VLSFO, Zhoushan’s Hi5 spread has narrowed by $19/mt to $64/mt. This remains lower than Fujairah’s Hi5 spread of $80/mt and Singapore’s $73/mt.

Despite subdued demand, VLSFO availability in Zhoushan has tightened, with several suppliers running low on stocks. As a result, recommended lead times have lengthened to 7–10 days, up from 5–7 days last week. In contrast, lead times for LSMGO and HSFO in Zhoushan remain unchanged at 5–7 days.

Across northern China, bunker fuel availability remains uneven. Dalian and Qingdao have adequate supplies of VLSFO and LSMGO, though HSFO remains tight in Qingdao. Further south, both VLSFO and LSMGO continue to be tight in Fuzhou.

Brent

The front-month ICE Brent contract has gained $1.17/bbl up on the day, to trade at $64.93/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has edged higher amid renewed supply concerns.

The move followed OPEC+ producer Kazakhstan’s decision to halt output at its major Tengiz and Korolev oilfields due to power distribution disruptions.

Production at Tengiz oilfield was halted last week after a fire broke out at a power facility supplying the field.

Besides, the International Energy Agency’s (IEA) monthly oil market report provided some boost to Brent’s price today.

The agency revised its oil demand growth estimates for 2026 from 860,000 b/d to 930,000 b/d.

“[Oil market] sentiment was boosted by a slightly more positive outlook from the International Energy Agency,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

Brent’s price has felt some downward pressure after the American Petroleum Institute (API) reported a big rise in US crude stocks.

US crude oil inventories increased by 3.04 million bbls in the week ending 16 January, according to the API.

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

By Tuhin Roy and Aparupa Mazumder

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