East of Suez Market Update 8 Apr

Prices in East of Suez ports have slumped, while LSMGO availability is tight across several Australian ports.

IMAGE: An aerial view of Melbourne central business district, Victoria, Australia. Getty Images

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

• VLSFO prices down in Singapore ($128/mt), Fujairah ($123/mt) and Zhoushan ($120/mt)
• LSMGO prices down in Singapore ($375/mt), Zhoushan ($315/mt) and Fujairah ($227/mt)
• HSFO prices down in Zhoushan ($111/mt), Fujairah ($108/mt) and Singapore ($102/mt)
• B30-VLSFO prices down in Singapore ($203/mt)

VLSFO prices across the three major Asian bunker ports have declined sharply over the past day, with Singapore recording the sharpest drop. The decline followed Brent crude, which has slipped below $100/bbl after US President Donald Trump announced a temporary ceasefire deal with Iran.

In Singapore, the fall in VLSFO price has outpaced the drop in its HSFO benchmark. As a result, the port’s Hi5 spread has narrowed by $26/mt to $122/mt, placing it above Zhoushan at $121/mt and Fujairah at $97/mt.

Prompt supply of VLSFO remains under pressure in Singapore, with recommended lead times easing to 6–11 days from 10–12 days last week. HSFO availability is still constrained, requiring lead times of 7–10 days, compared with 9–13 days previously.

Meanwhile, bunker prices across several ports in Australia remain elevated, largely supported by the ongoing Middle East crisis, according to an Australia-based trader.

In response, the Australian Government has cut fuel excise on petrol and diesel by half for three months starting 1 April, alongside an additional reduction funded through GST revenue.

Despite these measures, LSMGO availability remains tight across all Australian ports. Suppliers are prioritising deliveries only to contracted customers, a source said.

Brent

The front-month ICE Brent contract has plunged by $14.95/bbl on the day, to trade at $94.41/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent has held firm throughout the month, supported by a sharp escalation in Middle East tensions, including supply disruptions and strikes on key energy infrastructure across the region.

There is a “stark difference” between the physical and financial markets' pricing of oil, according to ANZ Bank’s senior commodity strategist Daniel Hynes. About 9 million b/d of oil from Persian Gulf producers are expected to be shut in through April, Hynes said citing data from the US Energy Information Administration (EIA).

The front-month Brent futures contract opened the year at $61/bbl, while finishing the first quarter at $118/bbl, according to the EIA.

“The disruptions are real and likely to be felt for some time. This is likely to see volatility remain high,” Hynes added.

Downward pressure:

Brent crude’s price has plummeted after US President Donald Trump announced a temporary halt to military operations in the Middle East – giving the oil market a moment of relief, according to analysts.

Washington agreed to a two-week conditional ceasefire, if Iran reopens the Strait of Hormuz for commercial vessel traffic.

“Oil prices plunged below $100/bbl after the US and Iran agreed to a two‑week ceasefire, easing fears of prolonged supply disruption,” two analysts from ING Bank said.

The ceasefire is expected to halt the US‑Israeli military operations in exchange for Tehran reopening the Strait of Hormuz to international vessel movement.

“The proposed framework reportedly allows Iran and Oman to levy transit fees on vessels passing through the Strait,” ING Bank’s analysts said.

By Tuhin Roy and Aparupa Mazumder

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