East of Suez Market Update 9 Feb

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

IMAGE: Container ships and gantry cranes in Port Khorfakkan, UAE. Sharjah Ports

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

• VLSFO prices down in Singapore ($9/mt), Fujairah and Zhoushan ($2/mt)
• LSMGO prices down in Fujairah ($10/mt), Singapore ($8/mt) and Zhoushan ($5/mt)
• HSFO prices up in Fujairah ($1/mt), and down in Singapore ($3/mt) and Zhoushan ($1/mt)
• B30-VLSFO prices up in Fujairah ($3/mt) and down in Singapore ($5/mt)

Singapore’s VLSFO price has declined by $9/mt over the weekend, marking the steepest drop among the three major Asian bunker ports. The port’s VLSFO price is currently at a marginal premium of $5/mt over Fujairah and at a discount of $22/mt to Zhoushan.

LSMGO prices have fallen by $5–10/mt, with Fujairah recording the sharpest decline. Despite the decrease, Fujairah’s LSMGO price remains at significant premiums of $80/mt and $45/mt over Singapore and Zhoushan, respectively.

Prompt bunker supply in Fujairah remains tight across all fuel grades, with several suppliers recommending lead times of 5–7 days, although some can arrange urgent stems at a premium, according to a source. Similar supply conditions are also reported at Khor Fakkan.

In Basrah, VLSFO and LSMGO remain readily available, while HSFO supply continues to be limited. At Jeddah, availability of both VLSFO and LSMGO has improved, but ongoing port congestion continues to slow bunker delivery operations. 

Brent

The front-month ICE Brent contract has declined by $0.83/bbl on the day from Friday, to trade at $67.41/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has found some support after the European Commission (EC) proposed a 20th package of sanctions against Russia, a move that could significantly tighten curbs on Moscow’s energy trade.

If implemented, the sanctions will prevent EU-based firms from providing shipping, insurance, financing and other maritime services for Russian crude at any price.

“On energy, we introduce a full maritime services ban for Russian crude oil. It will slash further Russia's energy revenues and make it more difficult to find buyers for its oil,” the EC said in a statement.

Moreover, the package adds an additional 43 vessels to its shadow fleet blacklist, bringing the total number of banned Russia-linked vessels to around 640.

Downward pressure:

Brent crude’s price has lost momentum as nuclear talks between the US and Iran appeared to have made some progress – easing supply concerns.

“Iran enters diplomacy with open eyes and a steady memory of the past year,” Iran’s Foreign Minister Abbas Araghchi wrote on social media platform X (formerly Twitter).

Washington and Tehran have agreed to continue the indirect talks about the latter’s nuclear ambitions, Reuters reported.

“Oil prices came under renewed pressure… after nuclear talks between the US and Iran were seen as constructive,” two analysts from ING Bank noted.

By Tuhin Roy and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online