East of Suez Market Update 8 Dec

Most prices at East of Suez ports have been broadly rangebound, and fuel availability is good across Taiwan.

IMAGE: Illuminated Kaohsiung city and harbor at night, Taiwan. Getty Images

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

• VLSFO prices up in Zhoushan ($10/mt) and Fujairah ($1/mt), and unchanged in Singapore
• LSMGO prices up in Singapore ($4/mt) and Fujairah ($1/mt), and down in Zhoushan ($13/mt)
• HSFO prices up in Singapore ($4/mt) and Fujairah ($1/mt), and down in Zhoushan ($1/mt)
• B30-VLSFO at a $269/mt premium over VLSFO in Singapore
• B30-VLSFO at a $282/mt premium over VLSFO in Singapore

Zhoushan’s VLSFO price has risen by $10/mt over the weekend – the steepest among the three major Asian bunker ports. Zhoushan’s VLSFO is trading at notable premiums of $37/mt over Fujairah and $36/mt over Singapore.

Demand in Zhoushan remains weak, and suppliers continue to advise 4–7 days of lead time for all fuel grades, similar to last week.

Taiwan’s CPC Corporation had earlier suspended VLSFO orders at Taichung port until 4 December due to pipeline work, but bunkering has now resumed and supply conditions have stabilised, according to a source.

Across Taiwan’s main ports — Keelung, Taichung, Hualien, and Kaohsiung — both VLSFO and LSMGO are typically available within two days, consistent with last week.

Brent

The front-month ICE Brent contract has gained by $0.35/bbl on the day from Friday, to trade at $63.61/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has moved higher over the weekend as market participants prepare for a final interest rate cut by the US Federal Reserve (Fed).

Lower US interest rates typically boost demand by making dollar-denominated commodities, like oil, more affordable for non-dollar holders, potentially offering some upside support to prices in the medium term.

“The market is still priced for a December Fed rate cut and the continuation of the easing cycle into 2026,” SPI Asset Management managing partner, Stephen Innes, remarked.

The US central bank is set to hold its Federal Open Market Committee (FOMC) meeting over the next two days.

Downward pressure:

Oil market analysts note that the Russia-Ukraine backdrop is keeping a lid on Brent’s price gains, as Washington continues to push for an immediate peace deal.

The ceasefire could ease western sanctions on Russian energy exports, adding extra barrels to the global oil mix, according to analysts.

“The oil market has to price a very fat tail: a successful deal that leads to sanctions relief could unleash millions of “clean” barrels currently stranded in the shadow fleet,” Innes added.

However, progress in peace negotiations remain slow, with disputes over security guarantees for Kyiv, Reuters reports.

By Tuhin Roy and Aparupa Mazumder

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