East of Suez bunker prices have fallen on the day with Brent values, after API figures showed a bigger-than-expected build in US crude inventories.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO prices down in Fujairah ($12/mt), Singapore ($10/mt) and Zhoushan ($6/mt)
- LSMGO prices down in Fujairah ($16/mt), Zhoushan ($14/mt) and down in Singapore ($9/mt)
- HSFO380 prices down in Singapore ($13/mt), Fujairah ($11/mt) and Zhoushan ($8/mt)
Singapore’s bunker market continues to be very tight for another week with recommended lead times going up further to 14 days ahead, which is the longest among major East of Suez ports.
VLSFO is slightly more available in Fujairah at nine days, while Zhoushan requires a shorter 2-3 days in advance. HSFO380 is tight in the Chinese port, with only one supplier currently offering the fuel grade. Another supplier is expected to replenish stocks with an incoming cargo on 4 November.
The same situation has been observed in Shanghai lately, where HSFO380 has been more difficult to source for prompt dates. Shanghai’s low sulphur fuels stems require similar lead times as in Zhoushan.
Brent
Front-month ICE Brent crude has dropped $1.57/bbl lower on the day to 16.00 SGT (08.00 GMT) today, when it traded at $83.34/bbl.
Brent is down after American Petroleum Institute (API) figures showed a big crude stock build in the US of 3.60 million bbls – more than twice as much as analysts polled by Reuters expected.
Official data from the US Energy Information Administration (EIA) is due to be released at 14.30 GMT today.
US President Joe Biden has reiterated calls for OPEC+ to phase back oil cuts quicker than its 400,000 b/d per month increase plan allows. Several OPEC+ member states led by Saudi Arabia, Kuwait, Iraq and Angola have come out in support of its output plan, arguing this will help balance the market.
An expert OPEC+ committee forecast found no significant changes to supply-demand fundamentals for the months ahead, and the group is expected to stick to its current plan when it meets for talks tomorrow.