Bunker prices have risen with Brent in East of Suez ports and recovered some of yesterday’s losses.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO prices up in Singapore ($8/mt), Fujairah ($1/mt), and steady in Zhoushan
- LSMGO prices up in Singapore ($3/mt), steady in Zhoushan, and down in Fujairah ($9/mt)
- HSFO380 prices up in Singapore ($3/mt), Zhoushan and Fujairah ($2/mt)
Bunker supply operations have restarted in Zhoushan’s inner anchorage today, after typhoon In-Fa made a landfall in local Chinese ports last Sunday. However, vessels are still unable to receive bunkers at outer anchorage as the weather there remains rough, and operations are suspended.
Zhoushan suppliers have started clearing their backlogs from last week, but most of them are committed until the end of the month and supply dates vary between them. Recommended lead times have doubled, standing at five days now.
Suppliers in Singapore also offer in a wide range in lead times for VLSFO. Some suppliers can offer promptly for the fuel grade, but for others require as long as nine days.
Fujairah’s LSMGO price was the only price to record a loss over the past day. It was brought down under pressure from a lower-priced 0-50 mt stem. LSMGO stems continue to require up to six days of lead time in the UAE bunkering hub.
Brent
ICE Brent September futures have jumped $1.25/bbl higher on the day, to $74.51/bbl at 16.00 SGT (08.00 GMT).
Brent rose to intraday highs of nearly $75/bbl for the first time in two weeks earlier today. Tighter global supplies and a weaker US dollar have outweighed demand concerns over rising Covid-19 cases in parts of the world to boost Brent.
The OPEC+ deal to increase oil output by 400,000 b/d in each month from August is not enough to prevent undersupply in coming months and analysts expect a tightening global supply-demand balance.
The US dollar has weakened against other currencies ahead of a two-day Federal Reserve meeting from today. Investors are looking out for comments on employment, inflation and signs of any tapering of the Fed’s asset purchasing.
Cases of the Delta coronavirus variant have surged in several Asia countries, in Germany, and especially in parts of the US with lower vaccination rates. The US has extended travel bans for non-US citizens visiting from most other big countries. Vaccination campaigns are up against the more transmissible Delta variant, but hospitalisation rates are much lower with higher vaccination rates.
Brent has been trading in a narrower range this week, after a sharp selloff and an equally steep recovery last week. Investors await the weekly oil status reports from the American Petroleum Institute (API) later today, and from the Energy Information Administration (EIA) tomorrow for pointers on US demand and further price direction.