Bunker prices have dropped on the day across East of Suez ports, dragged down by lower Brent values after a sizeable US crude inventory build.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO prices down in Fujairah ($10/mt) and Singapore ($7/mt)
- LSMGO prices down in Singapore ($15/mt), Zhoushan ($13/mt) and Fujairah ($8/mt)
- HSFO380 prices down in Fujairah ($19/mt), Zhoushan ($10/mt) and Singapore ($7/mt)
VLSFO prices have dropped in Singapore and Fujairah, bringing them down to significant discounts to Zhoushan, where the grade has been priced in a wide range in the past two days.
HSFO380 supply continues to be very tight in the Chinese port. One supplier has advised that its stocks will be replenished towards the end of November, while another has said as soon as next week, sources say.
Fujairah’s bunker market continues to be tight in the aftermath of Cyclone Shaheen two weeks ago, and a lack of blending components in the port. Lead times stretch up to 14 days for HSFO380 in the UAE bunkering hub.
Brent
Front-month ICE Brent has fallen by $1.37/bbl on the day to 16.00 SGT (08.00 GMT), when it stood at $83.91/bbl.
Brent has dropped to two-week intraday lows following yesterday’s release of official US crude stocks data showing a bigger-than-expected build of 4.27 million bbls. Analysts polled by Reuters had expected a smaller 1.90 million-bbl build.
In other news, Iran has announced it will return to the negotiating table in November, in an attempt to revive the 2015 nuclear deal.
“We agree to start negotiations before the end of November. Exact date would be announced in the course of the next week,” political deputy of the Ministry of Foreign Affairs of Iran Ali Bagheri tweeted.
A deal could pave the way for a return of Iranian barrels to the market. When Donald Trump pulled out of the nuclear deal to reimpose sanctions in 2018, around 2 million bbls of Iranian crude and condensate was taken out of the market.
“This could provide a segway for the United States to remove sanctions, which have severely throttled Tehran’s ability to sell its oil on global markets,” DailyFX analyst Thomas Westwater commented.