East of Suez bunker prices are down from Friday’s levels, as Brent has shed more than $1/bbl.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO price down in Zhoushan ($32/mt), Singapore ($11/mt) and Fujairah ($8/mt)
- LSMGO prices down in Singapore ($18/mt), Zhoushan and Fujairah ($12/mt)
- HSFO380 prices down in Zhoushan ($12/mt) and Singapore ($6/mt), and up in Fujairah ($4/mt)
Zhoushan’s VLSFO price has seen a sharper loss compared to values in Singapore and Fujairah, brought down by a lower-priced stem for 150-500 mt.
HSFO380 has inched up in Fujairah, despite lower Brent prices, where recommended lead times stand at 11 days out. VLSFO is slightly more readily available at nine days ahead.
The high sulphur grade is also tight in Zhoushan, as only one supplier can offer it right now. Another supplier is expected to replenish stocks with an incoming cargo in three days.
Bad weather is expected in Zhoushan from Friday, and to intensify in strength over the weekend. Deliveries at anchorage could be disrupted.
Brent
Front-month ICE Brent crude has come down by $1.38/bbl on the day since Friday, to $83.20/bbl at 16.00 SGT (08.00 GMT) today.
Brent is under pressure after China decided to release strategic gasoline and diesel reserves to ease some of the recent tightness in its market, especially for diesel. Chinese refineries have said they will follow suit by ramping up runs this month.
Concerns over high oil prices have prompted the US, Japan and India to renew their pleas for OPEC+ to increase output, to alleviate what US energy diplomat Amos Hochstein calls “an energy crisis,” according to Bloomberg. Their worry is that consumers feel the pinch during a global oil supply deficit and prices at near multi-year highs.
OPEC+ will meet on Thursday for monthly talks, and is expected to stick to its current 400,000 b/d output increase per month.