East of Suez Market Update 9 Apr
Most prices in East of Suez ports have moved up, and availability is good across several Indonesian ports.
IMAGE: Tanjung Priok Port, Jakarta, Indonesia, photographed from a commercial plane. Getty Images
Changes on the day to 17.00 SGT (09.00 GMT) today:
- VLSFO prices up in Zhoushan ($109/mt), Fujairah ($39/mt) and Singapore ($34/mt)
- LSMGO prices up in Fujairah ($116/mt) and Zhoushan ($91/mt), and down in Singapore ($28/mt)
- HSFO prices up in Zhoushan ($101/mt), Singapore ($37/mt) and Fujairah ($31/mt)
- B30-VLSFO prices up in Singapore ($42/mt)
Zhoushan’s VLSFO price has recorded the sharpest surge among the three major Asian bunker ports. It is now trading at notable premiums of $115/mt over Fujairah and $103/mt over Singapore.
Fuel availability in Zhoushan has tightened across all grades, with most suppliers facing low stock levels due to delayed cargo arrivals, a source said. Lead times have extended significantly, reaching 7–10 days for VLSFO and 5–10 days for both LSMGO and HSFO, compared to the typical 3–5 days across all grades last week.
In contrast, supply conditions in Indonesia remain relatively stable. VLSFO availability is steady in Jakarta, Surabaya, Balikpapan and Cigading, with lead times holding at around 2–3 days. LSMGO supply is also stable across Jakarta, Benoa, Surabaya and Batam, while HSFO stocks are well supplied in Jakarta, Surabaya and Balikpapan, according to a source.
Brent
The front-month ICE Brent contract has gained by $3.74/bbl on the day, to trade at $98.15/bbl at 17.00 SGT (09.00 GMT) today.
Upward pressure:
Brent crude prices have rebounded after Iran once again closed the Strait of Hormuz in response to Israeli strikes on Lebanon, raising fresh doubts over the already fragile two-week Middle East ceasefire.
Israel launched its heaviest bombardment of Lebanon so far on Wednesday, causing hundreds of deaths and triggering threats of retaliation from Iran, Reuters reported.
According to Iran’s parliamentary speaker Mohammad Bagher Ghalibaf in a post on X, Israel’s continued attacks on Lebanon are among three components of Iran’s 10-point ceasefire proposal that have been violated.
“Prices rebounded as fighting in the Middle East continued, and the ceasefire outlook deteriorated, keeping uncertainty around the Strait of Hormuz firmly in focus. Optimism over the ceasefire faded after Tehran said several terms of the agreement had been breached,” two analysts from ING Bank said.
“Oil tanker traffic through the Strait of Hormuz has been halted, heightening supply risks,” they added.
Tensions across the region have not eased despite the ceasefire. Iran has reportedly carried out strikes in neighbouring countries, including targeting a pipeline in Saudi Arabia that serves as an alternative route to bypass the Strait of Hormuz. Kuwait, Bahrain and the UAE have also reported missile and drone attacks by Iran, according to Reuters.
Meanwhile, US President Donald Trump stated that American military assets would remain deployed around Iran and warned that Washington would resume “shooting” if Tehran does not fully adhere to the agreement.
Within just a day, the ceasefire already appears fragile, with both sides offering conflicting interpretations of its key provisions and the prospects for a durable peace.
“Concerns the ceasefire will fail to hold are likely to see reluctance by oil exporters and ship owners to put their vessels back into the region in the near term,” Daniel Hynes, senior commodity strategist at ANZ Bank, said.
Downward pressure:
Brent crude prices have come under slight downward pressure following the release of the US Energy Information Administration’s (EIA) weekly inventory data.
Commercial US crude oil stocks rose by 3.1 million bbls to reach 464.7 million bbls in the week ending 3 April, according to the EIA.
By Tuhin Roy
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