East of Suez Market Update 27 Feb

Prices in East of Suez ports have risen, while bunker supply in Zhoushan has improved across all grades.

IMAGE: Aerial view of Zhoushan City, Zhejiang Province. Getty Images

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

• VLSFO prices up in Zhoushan ($9/mt), Fujairah ($5/mt) and Singapore ($4/mt)
• LSMGO prices up in Singapore and Zhoushan ($8/mt) and Fujairah ($2/mt)
• HSFO prices up in Zhoushan ($15/mt), Fujairah ($13/mt) and Singapore ($4/mt)
• B30-VLSFO prices up in Fujairah ($22/mt) and Singapore ($18/mt)

HSFO prices across the three major Asian bunker hubs have increased over the past day, with Zhoushan’s benchmark recording the steepest rise. Zhoushan’s HSFO price is at a premium of about $29/mt over both Fujairah and Singapore. 

Availability in Zhoushan has improved across all grades amid subdued demand. Lead times for VLSFO and LSMGO have shortened to around 3–5 days, down from 7–10 days last week. HSFO now requires 5–7 days, compared with 7–10 days previously.

In South Korea, several suppliers are recommending lead times of 3–8 days across all bunker grades, almost unchanged from 3–7 days last week.

Brent

The front-month ICE Brent contract has increased by $0.35/bbl on the day, to trade at $71.18/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has remained largely steady after the US and Iran extended nuclear negotiations, with market analysts expecting further rounds of indirect talks to come soon.

Representatives from both countries met in Geneva yesterday to discuss Tehran’s uranium enrichment programme after US President Donald Trump threatened military actions against the OPEC member.

The US has demanded for the handover of all 60% enriched uranium to it, according to Reuters.

“Before talks ended, Iran’s state media reported that Tehran won’t allow enriched uranium to leave the country,” ANZ Bank’s senior commodity strategist Daniel Hynes wrote.

Washington has not released any official statement regarding the progress of the meeting. Besides, there is “little time to reach a deal before President Trump’s deadline of 1–6 March,” Hynes said.

Negotiations are expected to resume next week in Vienna, Omani Foreign Minister Sayyid Badr Albusaidi said on social media platform X.

Oman is the mediator in the ongoing discussions. “Rising tensions between the US and Iran have reminded the oil market that geopolitical risks should not be ignored,” Hynes added.

Downward pressure:

Saudi Arabia-led OPEC group is expected to increase oil output by 137,000 b/d for April in its upcoming meeting on 1 March – changing course from a three-month pause in hikes, Reuters reported.

This news has put some downward pressure on Brent’s price today.

The Vienna-headquartered coalition had implemented hikes of 137,000 b/d in 2025, before deciding to pause the increases for the first quarter of this year – a move likely to withhold a surplus in the global oil market, according to analysts. 

By Shilpa Sharma, Tuhin Roy and Aparupa Mazumder

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