East of Suez fuel prices are up with Brent crude, and stems have been disrupted amid rough weather in South Korean ports.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO prices up in Singapore ($22/mt), Fujairah ($14/mt) and in Zhoushan ($11/mt)
- LSMGO prices up in Singapore ($20/mt), Zhoushan ($13/mt) and in Fujairah ($8/mt)
- HSFO380 prices up in Singapore ($10/mt) and Fujairah ($9/mt)
Bad weather has cancelled bunker deliveries across South Korean ports today, sources say. Delays are expected to pile up until 13 November, from when calmer weather conditions could see bunker suppliers begin to clear backlogs.
Deliveries are expected to resume tomorrow in China’s Zhoushan, after bunkering was suspended on Friday due to rough weather in the region. Bunkering restarted in Shanghai yesterday, and other northern ports in China are expected to resume gradually.
A supplier in Zhoushan has run out of VLSFO and LSMGO, while LSMGO is tight with most suppliers in the Chinese port. Only one supplier can offer HSFO380 in Zhoushan, with the rest of them having insufficient supply of the high sulphur grade.
VLSFO and HSFO380 availability remains tight in Singapore, with lead times of up to 12 days. LSMGO is more readily available with recommended lead times at eight days.
Hi5 spreads have widened by $13/mt to $167/mt in Singapore and by $6/mt to $128/mt in Fujairah.
Brent
Front-month ICE Brent crude has jumped $1.72/bbl higher on the day to 16.00 SGT (08.00 GMT), when it traded at $85.21/bbl.
The futures contract climbed to two-week intraday highs after US crude stocks surprised analyst expectations by falling 2.49 million bbls last week, according to indicative figures from the American Petroleum Institute (API).
Analysts polled by Oilprice.com had expected a 1.90 million-bbl build. The draw ended six consecutive weeks of builds and helped push Brent above the $85/bbl mark.
Official Energy Information Administration (EIA) stock figures are set for release at 14.30 GMT today.
The EIA came out with a new forecast yesterday, now expecting Brent to hover around current levels for the rest of the year, and average $82/bbl in the fourth quarter amid undersupply. For next year it expects higher output from OPEC+, US shale producers and other non-OPEC producer to outpace demand growth and pull Brent down to an average of $72/bbl for the year.