East of Suez Market Update 24 Apr

Most prices in East of Suez ports have moved up, and VLSFO and LSMGO availability is tight across several Middle Eastern ports.

IMAGE: A beautiful sunset over the port of Djibouti on the Red sea. Getty Images

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

• VLSFO prices up in Fujairah ($31/mt), Singapore ($19/mt) and Zhoushan ($9/mt)
• LSMGO prices up in Fujairah ($53/mt), Zhoushan ($45/mt) and Singapore ($15/mt)
• HSFO prices up in Fujairah ($27/mt), Zhoushan ($5/mt), and down in Singapore ($1/mt)
• B30-VLSFO prices up in Singapore ($23/mt)

VLSFO price in Fujairah have climbed by $31/mt over the past day - the sharpest increase among the three major Asian bunker ports. Consequently, Fujairah’s VLSFO premiums over Zhoushan and Singapore have widened by $22/mt and $12/mt to $32/mt and $22/mt, respectively.

“The bunkering situation in the Middle East is more stable now, but still not fully consistent,” a source said.

Bunkering operations in Fujairah continue without disruption, with terminals and anchorages functioning normally. “Avails [are] ok as of now, all offers are subject to firm inquiry,” another source said.

Despite steady operations, some suppliers are loading barges in line with actual demand rather than at full capacity, pointing to subdued bunker demand at the port.

Meanwhile, bunker availability in Jeddah and Saudi Arabia remains tight, particularly for VLSFO and LSMGO. VLSFO is nearly depleted at Egypt’s Port Suez, while LSMGO supply there remains adequate.

VLSFO and LSMGO availability remains tight at the Port of Djibouti.

Brent

The front-month ICE Brent contract has gained by $2.29/bbl on the day, to trade at $106.29/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price continues to trade north amid sustained geopolitical escalation in the Middle East.

Yesterday, Iran’s Revolutionary Guard Corps (IRGC) seized two container ships – the Panama-flagged MSC Francesca and the Liberia-flagged Epaminondas – while firing gunshots at a third vessel in the Strait of Hormuz.

The news has put upward pressure on Brent’s price, breaking well above $100/bbl once again, according to market analysts.

“The IRGC escorted the seized ships toward the Iranian coast, again terrorizing this vital chokepoint that carries a significant portion of the world’s oil and LNG flows,” Price Futures Group’s senior market analyst Phil Flynn said.

Downward pressure:

Commercial US crude oil inventories increased by 1.9 million bbls to about 466 million bbls in the week ending 17 April, according to data from the US Energy Information Administration (EIA).

“That’s [EIA figures] still about 3% above the five-year average for this time of year — keeping the crude market well-supplied and balanced,” Flynn said.

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

Meanwhile, a ceasefire extension between Israel and Lebanon has also capped some of Brent’s price gains today.

By Tuhin Roy and Aparupa Mazumder

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