East of Suez Market Update 3 Dec

Prices in East of Suez have moved in mixed directions, and LSMGO availability is good across several Omani ports.

IMAGE: Bunker barge at berth in Fujairah, UAE. Port of Fujairah

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

• VLSFO prices up in Fujairah ($3/mt), and unchanged in Singapore and Zhoushan
• LSMGO prices up in Zhoushan ($2/mt), and down in Fujairah ($7/mt) and Singapore ($6/mt)
• HSFO prices up in Fujairah ($2/mt) and Singapore ($1/mt), and down in Zhoushan ($8/mt)
• B30-VLSFO at a $246/mt premium over VLSFO in Singapore
• B30-VLSFO at a $272/mt premium over VLSFO in Singapore

VLSFO prices across the three major Asian bunker hubs have stayed largely rangebound over the past day. Fujairah’s VLSFO price is at a discount of $15/mt to Zhoushan and $4/mt to Singapore.

Despite the $7/mt drop recorded over the past session, Fujairah’s LSMGO still carries premiums of $54/mt over Singapore and $11/mt over Zhoushan.

Prompt supply in Fujairah remains tight across all grades, with several suppliers facing congested delivery schedules. Most advise 5–7 days of lead time, though some can still offer urgent stems at a premium, a source said. Conditions in nearby Khor Fakkan mirror those in Fujairah.

Oman’s ports — Sohar, Salalah, Muscat and Duqm — remain stable, with dependable LSMGO availability and prompt delivery options.

Brent

The front-month ICE Brent contract has dipped by $0.13/bbl on the day, to trade at $62.84/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Oil prices have been buoyed by ongoing US–Venezuela tensions.

Trump said over the weekend that the airspace above and around Venezuela should be treated as closed, injecting fresh uncertainty into the oil market given the country’s role as a major producer, according to Reuters.

“Geopolitical risks are also rising around potential US military action in Venezuela that could threaten the latter’s oil production,” added ANZ Bank senior commodity strategist Daniel Hynes.

On Sunday, OPEC+ reaffirmed a small output increase for December and paused further hikes in the first quarter of next year amid rising concerns about a supply glut. The move remains supportive for oil prices in the near term.

US crude inventories fell by 2.48 million bbls in the week ending 28 November, marking “the second straight weekly decline in inventories,” according to American Petroleum Institute (API) estimates cited by Trading Economics.

A drop in US crude stocks typically signals stronger demand and can lend support to Brent. The official Energy Information Administration (EIA) data will be released later today.

Downward pressure:

Uncertainty surrounding Russia–Ukraine peace talks has put pressure on Brent futures.

Russian President Vladimir Putin met US President Donald Trump’s special envoy Steve Witkoff and son-in-law Jared Kushner in the Kremlin on Tuesday, but just before the meeting he warned European powers that if they initiated a war with Russia, Moscow was prepared to fight. Putin also threatened to cut off Ukraine’s access to the sea in response to drone attacks on tankers in Russia’s “shadow fleet” in the Black Sea, according to Reuters.

“Oil prices traded lower yesterday as the US and Russia held talks on Ukraine,” said two analysts from ING Bank.

“Crude oil finished lower following a choppy session, as geopolitical tensions roiled the market,” added ANZ Bank’s Daniel Hynes.

By Tuhin Roy

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