East of Suez Market Update 26 Mar

Prices in East of Suez ports have moved up, and availability of all grades is good across several Indonesian ports.

IMAGE: Tanjung Priok Port, Jakarta, Indonesia, photographed from a commercial plane. Getty Images

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

• VLSFO prices up in Zhoushan ($58/mt), Singapore ($51/mt) and Fujairah ($16/mt)
• LSMGO prices up in Fujairah ($132/mt), Zhoushan ($86/mt) and Singapore ($58/mt)
• HSFO prices up in Fujairah ($75/mt), Zhoushan ($48/mt) and Singapore ($46/mt)
• B30-VLSFO prices up in Singapore ($87/mt)

VLSFO benchmarks across the three major Asian bunker ports have shifted within a range of $16–58/mt over the past day, with Fujairah recording the smallest gains. None the less, Fujairah’s VLSFO now trades at premiums of $71/mt and $62/mt over Singapore and Zhoushan, respectively.

In the HSFO segment, Fujairah has seen a sharper increase of $75/mt, outpacing VLSFO's gains. This has narrowed the port’s Hi5 spread by $59/mt to $98/mt, placing it below Singapore’s $159/mt and Zhoushan’s $137/mt.

Despite persistent regional tensions, bunkering operations in Fujairah remain ongoing, even after repeated attacks in recent weeks, a source said. However, fuel availability across all grades remains tight, with offers largely dependent on firm enquiries, a trader noted.

In contrast, supply conditions in Indonesia are relatively stable. VLSFO availability remains steady in Jakarta, Surabaya, Balikpapan and Cigading, with lead times of approximately 2–3 days. LSMGO supply is also stable across Jakarta, Benoa, Surabaya and Batam, while HSFO stocks are well supplied in Jakarta, Surabaya and Balikpapan, according to an Indonesia-based trader.

Brent

The front-month ICE Brent contract has gained by $7.09/bbl on the day, to trade at $105.89/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent’s price has bounced back above $100/bbl mark as Iran rejected Washington’s claims of negotiating with Tehran.

The US has put forward a 15-point ceasefire plan to Iran that could open the door to a month-long truce. Tehran, however, has dismissed claims that any direct negotiations with the US are underway.

“Has the level of your inner struggle reached ‌the ⁠stage of you negotiating with yourself?” Reuters reported, quoting Iranian military spokesperson Ebrahim Zolfaqari as saying.

The Strait of Hormuz – which is highly critical for crude oil flows – continues to remain closed to commercial vessel movement, adding upward pressure on Brent’s price, according to analysts.

“For oil, the crucial element is the guarantee of safe and unrestricted passage for international shipping through the Strait of Hormuz, effectively reopening it to all vessels,” Price Futures Group’s senior market analyst Phil Flynn wrote.

Downward pressure:

Brent crude’s price has felt some downward pressure after the US Energy Information Administration (EIA), reported a sizeable increase in US crude stocks.

Commercial US crude oil inventories increased by 6.9 million bbls to 456 million bbls in the week ending 20 March, according to data from the EIA.

Yesterday, the American Petroleum Institute (API) reported a rise of 2.3 bbls in the week.

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

By Tuhin Roy and Aparupa Mazumder

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