Global bunker prices have extended yesterday’s gains, as Brent adds 4% on the day.
Changes in the day to 08.00 GMT today:
- VLSFO prices up in Singapore ($17/mt), Gibraltar ($15/mt), Fujairah ($13/mt), Rotterdam ($7/mt) and down in Houston ($15/mt)
- LSMGO prices up in Singapore ($23/mt), Rotterdam and Gibraltar ($12/mt), Fujairah ($11/mt), and down in Houston ($18/mt)
- HSFO380 prices up in Singapore ($17/mt), steady in Fujairah, Gibraltar and Rotterdam, and down in Houston ($9/mt)
The bunkering hub of Singapore saw the sharpest gains across global bunker ports today, with VLSFO prices surpassing the $500/mt mark again after dipping to two-month lows last Friday.
Houston’s VLSFO and LSMGO prices were the only ones to record losses on the day, both of which were due to lower-priced stems in the US Gulf port.
Singapore’s Hi5 spread is steady on the day, as both fuel grades saw similar gains on the day. VLSFO and HSFO380 both require 7-8 days in the bunkering hub now, while LSMGO is more readily available with 4-5 days needed ahead.
The South Korean ports of Busan and Ulsan halted port operations yesterday, including bunkering, as Typhoon Omais hit the southern coast of the country and bringing rainstorms and strong wind gusts.
Western Japan has also been affected by the same Typhoon and disrupting port operations. As a result, barge availability has tightened significantly in the country’s western ports with earliest delivery date now being more than 10 days away.
Brent
Front-month ICE Brent has surged by $2.79/bbl to 08.00 GMT today, reaching $69.25/bbl.
Brent values drew support from the FDA’s approval of the Pfizer vaccine in the US, fueling hopes for global demand recovery. A weaker dollar has also buoyed Brent today, with the futures contract trading above $70/bbl at 12.00 GMT.
However, the spread of Delta variant cases around the world continue to weigh on crude prices and capping further gains.