East of Suez bunker prices are up for a second day as Brent values inch up.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO prices up in Zhoushan ($5/mt), Fujairah and Singapore ($4/mt)
- 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)
Zhoushan’s VLSFO price discount to Singapore has widened further today, standing at a $12/mt difference. The two ports had the fuel grade similarly priced last week.
VLSFO prices in Singapore, Fujairah and Zhoushan since 18 July
Bunker supply operations restarted in the inner anchorages of Zhoushan and Shanghai yesterday, but with recommended lead times going up to five days in Zhoushan as suppliers are clearing their backlogs.
Supply dates vary between suppliers in Zhoushan, with some suppliers requiring up to 10 days ahead while others can accommodate as soon as this weekend.
Lead times are shorter by two days in Singapore this week, now standing at 7-8 days ahead. Suppliers in Singapore offer in a wide range in lead times for VLSFO. Some suppliers can offer promptly for the fuel grade, while others still require as long as nine days.
Brent
ICE Brent September crude has edged $0.20/bbl higher on the day, to $74.71/bbl at 16.00 SGT (08.00 GMT).
Brent was trading close to $75/bbl earlier today, buoyed by data from the American Petroleum Institute (API) pointing to growing US oil demand as US crude and gasoline inventories declined on the week. Crude inventories came down by 4.73 million bbls in the week to 23 July, and gasoline inventories by 6.23 million bbls, according to the API.
“US crude inventories fell more than expected last week, underscoring strong demand in North America,” DailyFX strategist Margaret Yang said.
Official US oil data on oil stocks will be released via the Energy Information Administration (EIA) at 14.30 GMT today, and could put more upward pressure on Brent if it confirms the stock draws.
Further gains for Brent continue to be capped by a global rise in new daily Covid-19 cases. US cases have spiked with the rapid spread of the Delta variant, and Sydney has extended its lockdown by four weeks as cases rise in Australia.
Investors will also closely monitor today’s Federal Reserve meeting for clues on the central bank’s monetary policy. The Fed is not expected to raise interest rates until 2023, but will start tapering its massive asset purchasing programme in good time before then. If the tapering timeline is pushed back more than analyst expect, it will likely weigh on the US dollar and spike prices for Brent and other dollar-denominated commodities, DailyFX’s Yang said.