East of Suez Market Update 29 Oct

Most prices in East of Suez ports have declined, while HSFO prices have risen in Zhoushan and Singapore. VLSFO and HSFO availability remains tight in Zhoushan.

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

• VLSFO prices unchanged in Zhoushan, and down in Fujairah ($9/mt) and Singapore ($4/mt)
• LSMGO prices down in Zhoushan ($65/mt), Singapore ($23/mt) and Fujairah ($7/mt)
• HSFO prices up in Zhoushan ($19/mt) and Singapore ($5/mt), and down in Fujairah ($4/mt)
• B30-VLSFO price down in Singapore ($9/mt)

Zhoushan’s LSMGO price has fallen by $65/mt, the steepest move among the three major Asian bunker ports. The price now stands at a $38/mt premium over Singapore and a $357/mt discount to Fujairah.

Zhoushan’s HSFO price has risen by $19/mt, while its VLSFO price has held steady. Consequently, its Hi5 spread has narrowed from $88/mt to $69/mt, remaining below Singapore’s $92/mt and Fujairah’s $222/mt.

Zhoushan’s average HSFO price for October so far, at $880/mt, is the highest since November 2021. The port’s monthly average Hi5 spread has narrowed to $62/mt in October from $166/mt in September, its lowest since February.

VLSFO and HSFO availability remains tight in Zhoushan even though demand is subdued. Several suppliers are reporting low inventories and reduced imports, a source said. VLSFO lead times have eased to eight days from 12 days last week, while HSFO lead times are unchanged at 12 days. LSMGO availability has improved, with lead times down to around four days from 12 days a week earlier.

Bunkering at Zhoushan’s outer and inner anchorages resumed yesterday after a week-long suspension caused by adverse weather from Typhoon Champi, a source said.

Brent

The front-month ICE Brent contract has declined by $1.99/bbl on the day, to trade at $113.49/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has felt some upward pressure amid signs that Washington could resume military action against Iran in the near term.

The US has warned several Gulf countries to prepare for a short but intense campaign against Tehran, the Wall Street Journal reported.

Besides, another draw in US crude stocks has supported Brent’s price today.

US commercial crude stocks fell by 1.90 million bbls to 410.60 million bbls in the week ending 23 October, according to the US Energy Information Administration (EIA).

This was the fourth straight weekly drop in US crude inventories, ANZ Bank’s senior commodity strategist Daniel Hynes noted.

Downward pressure:

Brent’s price has come under pressure amid renewed US efforts to revive peace negotiations with Iran.

US Vice President JD Vance sent a letter to Iran’s Security Council chief Mohsen Rezaei, in a bid to restart talks, the Wall Street Journal reported, citing US officials.

Iran’s Foreign Minister Abbas Araghchi said yesterday that Tehran continues to give diplomacy a chance to succeed, Reuters reported.

By Tuhin Roy and Aparupa Mazumder

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