Bunker prices have seen small gains in East of Suez ports in the past day, after dropping in the previous two days.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO prices up in Singapore ($4/mt), Zhoushan ($3/mt) and Fujairah ($2/mt)
- LSMGO prices up in Zhoushan, Fujairah and Singapore ($4/mt)
- HSFO380 prices up in Fujairah ($4/mt), Zhoushan and Singapore ($1/mt)
Singapore’s Hi5 spread has added $3/mt on the day to stand at $124/mt. Lead times for VLSFO are up on the week in the bunkering hub, now requiring up to nine days ahead.
VLSFO prices are at parity in Singapore and Zhoushan, after seeing similar daily gains. The two ports have been pricing the grade at competitive levels to one another in recent days.
Bunker operations were suspended in Ningbo and Zhoushan last night, as the ports brace for the impact of cyclone In-Fa. Nearby Shanghai is also expected to be affected over the next few days, sources say.
All bunker barges will be brought into base in Zhoushan at 20.00 local time (12.00 GMT) today as a safety measure in preparation for the impact of the cyclone.
Zhoushan and Shanghai remain well supplied with bunker fuels, and the 2-3 days of lead time recommended in the ports are among the shortest in East of Suez ports.
Brent
Front-month ICE Brent has gained $0.33/bbl on the day, to $69.68/bbl at 16.00 SGT (08.00 GMT).
The futures contract has steadied and moved slightly up after sharp losses yesterday. Prices fell yesterday amid renewed oil demand concerns from the spread of the Delta Covid-19 variant. New daily cases have reached multi-month highs in several Asian and European countries, as well as certain US states with low vaccination rates.
“It has been quite the week for oil, with ICE Brent plunging below US$70/bbl, and trading to its lowest levels since May, with growing concerns over the spread of the Delta variant and what this will mean for demand,” ING’s Warren Patterson and Wenyu Yao said today.
Brent recovered some lost ground later today as the market awaits the weekly Energy Information Administration (EIA) report on US crude and oil products stocks for further price direction. Crude stocks have been drawn down in consecutive weeks for two months, and a reversal to a stock build could weigh on Brent.
Figures from the American Petroleum Institute (API), published yesterday, showed a “surprising” 800,000 bbl build in US crude inventories, according to ING. The build ran counter to analyst expectations for a draw and weighed on Brent earlier this morning.