East of Suez bunker prices are moving in different directions today, with some rising with Brent trading at three-year highs of more than $80/bbl.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO prices up in Zhoushan ($4/mt), down in Fujairah ($9/mt) and Singapore ($4/mt)
- LSMGO prices up in Singapore ($8/mt), steady in Zhoushan, and down in Fujairah ($15/mt)
- HSFO380 prices up in Zhoushan ($2/mt), and down in Fujairah ($2/mt) and Singapore ($1/mt)
VLSFO prices have dropped on the day in Singapore and Fujairah despite higher Brent values, while Zhoushan has seen small gains.
As a result, Zhoushan’s VLSFO is priced highest among the three ports now, standing at premiums of $4-8/mt over Singapore and Fujairah.
Zhoushan’s lead times for VLSFO supply remain steady, and among the shortest across East of Suez ports, at 2-3 days ahead. At the same time, Fujairah requires up to five days of lead time, and a longer eight days in Singapore.
HSFO380 supply continues to be tight in the Chinese port, with lead times stretching up to five days, as only two out of five suppliers can offer the fuel grade.
Brent
Front-month ICE Brent has jumped $1.50/bbl higher on the day to 16.00 SGT (08.00 GMT) today, when it traded at $80.27/bbl.
Brent has extended its rally to six days amid tighter global crude supplies and a continuous recovery from Covid-19.
Goldman Sachs forecasts Brent will gain another $10/bbl to reach $90/bbl by the end of the year, Reuters reports.
Global crude stocks are being drawn down at a faster pace than previously anticipated, partly because of lingering production outages in the Gulf of Mexico after Hurricane Ida struck, coupled with a lack of US shale oil ramp-up to fill the gaps, the bank said.
The lost supply in the aftermath of Hurricane Ida has exceeded the 400,000 b/d monthly output increases from OPEC+ since July. Global demand has bounced back from Covid-induced restrictions faster than expected. The supply-demand balance has increasingly tilted towards undersupply and accelerated stock draws in support of oil prices, Goldman Sachs said according to Reuters.