East of Suez Market Update 31 Mar

Prices in East of Suez ports have moved in mixed directions, and availability is tight across all grades in Fujairah.

IMAGE: Aerial view of Jebel Ali Port, Dubai. Getty Images

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

• VLSFO prices down in Fujairah ($168/mt), Singapore ($22/mt) and Zhoushan ($19/mt)
• LSMGO prices up in Zhoushan ($49/mt), Singapore ($41/mt) and Fujairah ($12/mt)
• HSFO prices up in Singapore ($25/mt), and down in Fujairah ($59/mt) and Zhoushan ($48/mt)
• B30-VLSFO prices down in Singapore ($8/mt)

Fujairah’s VLSFO price has plunged by $168/mt to $850/mt over the past day—the sharpest drop among the three major Asian bunker ports. The fall tracks Brent crude’s decline amid expectations of easing tensions in the Middle East. Additional downward pressure came from a lower-priced 500–1,500 mt VLSFO stem fixed in the port yesterday.

Consequently, Fujairah’s earlier premiums of $132/mt over Singapore and $127/mt over Zhoushan have reversed into discounts of $14/mt and $22/mt, respectively.

Despite persistent regional volatility, bunkering operations in Fujairah continue even after repeated attacks on the port in recent weeks, a source said.

“The Middle East remains volatile, with ongoing security concerns around Hormuz affecting vessel traffic and port operations,” a regional trader noted.

Authorities in Fujairah and Khor Fakkan have issued navigational warnings following reports of intermittent GPS spoofing and signal jamming offshore. These disruptions can lead to inaccurate positioning, erratic vessel movements and misleading navigation data, prompting advice for mariners to treat the area as high risk, according to Inchcape Shipping.

Most terminals and anchorages remain operational without interruption. However, fuel availability is tight across all grades in Fujairah, with offers dependent on firm enquiries, a trader said.

Elsewhere in the UAE, operations at Jebel Ali, Hamriya and Sharjah Port are proceeding normally. Petroleum terminals in Abu Dhabi, including Ruwais, are also functioning without disruption.

Ras Al Khaimah Ports remain fully operational. However, earlier this month, RAK Ports Group introduced a marine risk surcharge for all vessels calling at its ports, harbours, anchorages and approaches, according to the shipping agency.

In a separate incident, the Kuwaiti oil tanker Al Salmi was struck by a drone near Dubai’s anchorage earlier today, sparking a fire and raising initial concerns of a major oil spill. While Kuwait Petroleum warned of a potential leak due to hull damage, Dubai authorities later confirmed the fire was contained, with no injuries or oil spill reported, according to media reports.

Brent

The front-month ICE Brent contract has declined by $2.64/bbl on the day, to trade at $112.60/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has continued to trade above $110/bbl after the US warned of further escalation in the Middle East war.

US President Donald Trump has threatened to "blow up" Iran’s oil wells and power plants, as well as target Kharg Island and its desalination plants, if ongoing negotiations to reopen the Strait of Hormuz yield no outcome.

The threats come “despite [Trump] repeating that the US was in serious discussions with what he called a new regime in Iran to end military operations,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Kharg Island, which is located about 20 miles off Iran’s coast, holds “most of” Iran’s oil export infrastructure, according to Hynes. Targeting the region would reduce a big chunk of Iran’s oil supply.

Downward pressure:

Weighing on Brent’s price, a report by the Wall Street Journal said Trump has indicated a willingness to end the conflict with Iran, even if the Strait of Hormuz remains largely closed.

In a post on Truth Social yesterday, Trump said “great progress has been made” in efforts to resolve the conflict with Iran, reiterating that a potential deal to end the war remains within reach.

“Oil edged lower Tuesday morning after the Wall Street Journal reported that US President Donald Trump told aides he would be willing to end the military campaign in Iran,” two analysts from ING Bank noted.

By Tuhin Roy and Aparupa Mazumder

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