Bunker prices have mostly recorded gains across East of Suez ports, tracking higher Brent values on the day.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO prices up in Zhoushan ($27/mt), Singapore ($11/mt) and Fujairah ($8/mt)
- LSMGO prices up in Fujairah ($30/mt), Zhoushan ($10/mt), and down in Singapore ($1/mt)
- HSFO380 prices up in Zhoushan ($23/mt), Singapore ($11/mt) and Fujairah ($8/mt)
Zhoushan’s VLSFO price has risen by twice as much as prices in Singapore and Fujairah, lifted by a higher-priced 50-150 mt stem today.
Lead times in Zhoushan are normal for VLSFO and LSMGO, but with bad weather is forecast from Friday and will likely suspend bunkering, sources say.
HSFO380 is less readily available in the Chinese port with only one supplier offering it. Another supplier expects resupply on Thursday.
Fujairah’s VLSFO price has been at sustained premiums over Singapore and Zhoushan since 20 October, drawing support from tightness in the market. Recommended lead times for VLSFO continue to be at 11 days in the UAE bunkering hub.
Brent
Front-month ICE Brent has more than recouped its losses from the previous session by gaining $1.71/bbl on the day, to $84.91/bbl to 16.00 SGT (08.00 GMT).
Brent has climbed as OPEC member states failed to meet output increase targets last month.
The group was allowed to pump 254,000 b/d more oil last month as part of its agreement with allies in the bigger OPEC+ group. But they only managed to fulfil 190,000 b/d of that target, according to a Reuters survey.
While Saudi Arabia and Iraq boosted output to meet their quotas, several African member states including Nigeria and Libya fell short of their targets amid supply disruptions and lacking capacity to produce more.
“The world leaders are likely to be disappointed with the worsening oil market deficit that doesn’t seem like it will get any help from OPEC+,” OANDA analyst Ed Moya said.
OPEC+, which also includes Russia and nine other oil producers, have been increasing output by 400,000 b/d per month, and is expected to stick to that plan when it meets for monthly talks on Thursday.