Bunker prices have dropped alongside Brent in East of Suez ports in the past day.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO prices down in Zhoushan ($16/mt), Singapore ($10/mt) and Fujairah ($9/mt)
- LSMGO prices down in Zhoushan ($17/mt), Fujairah ($11/mt) and Singapore ($8/mt)
- HSFO380 prices down in Zhoushan ($10/mt), Singapore ($9/mt) and Fujairah ($8/mt)
Zhoushan’s VLSFO price has dropped just below those in Singapore and Fujairah, amid better availability of the grade in the Chinese port.
Several suppliers in Zhoushan ran low on VLSFO towards the end of August, but fuel availability is back to normal this week with recommended lead times at 2-3 days. Only one supplier has advised a longer lead time of around 3-4 days.
Fujairah’s VLSFO price has fallen by less than in Singapore and Zhoushan in the past day, bringing its premiums to these ports to $2-3/mt.
Low sulphur fuel grades are in good supply in Fujairah with lead times at six days. HSFO380, on the other hand, requires up to nine days ahead in the UAE bunkering hub.
Brent
Front-month ICE Brent has shed $0.67/bbl on the day, to $72.31/bbl at 16.00 SGT (08.00 GMT).
Refiners in Louisiana are assessing the damage caused by Hurricane Ida as they look to restart refineries, but power outages and widespread flooding may delay the process. 2.3 million b/d of refinery production was halted as refiners braced for the incoming hurricane.
Brent could come under pressure from lower crude demand if offshore oil rigs and platforms restart quicker than refineries.
Two of the 11 rigs and 10 of the 288 platforms that were evacuated in in the Gulf of Mexico in the lead-up to the hurricane have been manned again, the Bureau of Safety and Environmental Enforcement said yesterday.
OPEC+ members are expected to stick to their plan of increasing output by 400,000 b/d in monthly increments when they meet for monthly talks later today. The group forecasts the global oil market to have a deficit of just under 1 million b/d this year, before more OPEC+ oil will help to flip the balance to a surplus of 2.5 million b/d next year.