East of Suez Market Update 27 Mar

Most prices in East of Suez ports have moved down, and availability is very tight across several Japanese ports.

IMAGE: Tokyo Bay at sunset. Getty Images

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

• VLSFO prices down in Fujairah ($34/mt), Singapore ($25/mt) and Zhoushan ($22/mt)
• LSMGO prices up in Zhoushan ($28/mt), and down in Fujairah ($35/mt) and Singapore ($33/mt)
• HSFO prices up in Zhoushan ($8/mt), and down in Singapore ($50/mt) and Fujairah ($8/mt)
• B30-VLSFO prices down in Singapore ($84/mt)

VLSFO benchmarks across the three major Asian bunker ports have fallen by $22–34/mt over the past day, with Fujairah recording the steepest drop. Even so, Fujairah continues to command notable premiums of $62/mt over Singapore and $50/mt over Zhoushan.

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

In Japan, the domestic bunker market is under significant pressure amid persistent Middle East cargo flow disruptions. Last week, authorities began releasing both strategic reserves and private-sector stockpiles equivalent to 15 days of supply to stabilise the market. However, these crude volumes will take time to be refined into bunker fuels and delivered to end-users, meaning tight supply conditions are expected to persist through April, a Japan-based trader said.

Major Japanese refiners have formally notified suppliers that spot bunker volumes will be cut by around 50% from April, as they prioritise term commitments. Consequently, most suppliers have withdrawn spot offers for late March and April, focusing instead on existing contractual obligations.

Hyundai, utilising its import tank terminal in Nagoya, appears more flexible than domestic refiners. Depending on cargo arrival schedules, spot enquiries in the Nagoya region remain possible, offering a rare option compared to other Japanese regions where availability is effectively zero.

Meanwhile, Japanese refiner ENEOS occasionally retains the ability to issue direct offers. While its selection process is highly stringent and varies daily based on internal inventory levels, the possibility is not entirely ruled out. Beyond these limited channels, spot supply is described as virtually non-existent, the source added.

As a result, availability across all fuel grades in key Japanese hubs - including Tokyo, Chiba, Yokohama, Kawasaki, Nagoya, Yokkaichi, Mizushima, Kashima, Tokuyama and Oita - is now assessed strictly on a case-by-case basis.

Brent

The front-month ICE Brent contract has gained by $3.74/bbl on the day, to trade at $109.63/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude has felt upward pressure as concerns over oil supply disruptions in the Middle East continues to drive prices higher.

The US is expected to send more military personnels from its 82nd Airborne Division to the Middle East, Reuters reported citing two sources. The move would add to the huge military buildup in the region.

A further escalation could significantly intensify the conflict - now entering its fourth week - and deepen the disruption already felt across global markets, analysts said.

“With both sides continuing attacks and the US reportedly reinforcing its military presence in the region, concerns over supply disruptions remain elevated,” two analysts from ING Bank noted.

Downward pressure:

While there are no significant downward pressures on Brent’s price today, market participants will keep an eye on renewed possibilities of negotiations between the US and Iran.

The US is extending its pause on strikes targeting Iranian power plants by 10 more days, according to President Donald Trump.

“Oil prices steadied after US President Donald Trump again pushed back the deadline for striking Iran’s energy,” ING Bank analysts said.

Washington will not strike Iran’s energy facilities until 6 April at 20.00 ET (00.00 GMT), he said on the social media platform Truth Social.

“Extending the ceasefire takes some near-term heat out of the market,” the two analysts added.

By Tuhin Roy and Aparupa Mazumder

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