Bunker prices have moved in mixed directions for another day, amid Brent values inching down for the first time in four days.
Changes in the day to 08.00 GMT today:
- VLSFO prices down in Singapore ($2/mt), and up in Gibraltar and Houston ($10/mt), Rotterdam and Fujairah ($3/mt)
- LSMGO prices down in Fujairah and Singapore ($3/mt), and up in Gibraltar ($10/mt), Houston ($6/mt) and Rotterdam ($5/mt)
- HSFO380 prices down in Singapore ($8/mt), Fujairah ($4/mt), Houston ($3/mt), Rotterdam ($1/mt), and steady in Gibraltar
The port of Fujairah remains significantly congested after tropical storm Shaheen lashed the area with strong winds last week. Suppliers can deliver from 18 October onwards as loading schedules are very tight in terminals.
Supply of all three fuel grades continues to be difficult with HSFO380 being particularly tight in the port with lead times at eight days ahead. LSMGO has recently dried up in the UAE bunkering hub as well, with only a few suppliers having available product.
The port’s Hi5 spread has widened by $7/mt on the day to stand at $83/mt, as HSFO380 inched down today and VLSFO saw a small gain.
Fujairah’s fuel oil stocks have dropped by 13% to 7.083 million bbls on the week to 11 October, data from the Fujairah Oil Industry Zone (FOIZ) and S&P Global Platts showed today.
Gibraltar’s fuel oil supply has recently tightened as well, lifting the port’s VLSFO price higher when compared to regional ports. A supplier has run out of all three fuel oil grades in the port, with the rest having mixed earliest delivery dates. Lead times vary from 7 to as long as 17 days in Gibraltar.
Bunker supply operations resumed in Zhoushan and Ningbo as of yesterday, but with some congestion having built up in the two ports. Availability for low sulphur fuel grades is good in Zhoushan with 2-3 days of lead time, while HSFO380 is tighter in the Chinese port.
Brent
Front-month ICE Brent has shed $0.35/bbl to 08.00 GMT on the day, to stand at $83.22/bbl.
Brent’s four-day rally has come to an end after the futures contract dipped on worries over the recent energy crunch. Concerns about economic growth also put downwards pressure on crude oil prices.