Bunker prices are rising today across East of Suez ports as Brent has gained 2% in the past day.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO prices up in Fujairah ($11/mt), Zhoushan and Singapore ($10/mt)
- LSMGO prices up in Fujairah ($14/mt), Zhoushan ($13/mt) and Singapore ($12/mt)
- HSFO380 prices up in Zhoushan ($13/mt) and Singapore ($7/mt), and steady in Fujairah
Singapore’s price difference between HSFO380 and VLSFO – its Hi5 spread – has gained $3/mt on the day to stand at $89/mt, after having dropped to monthly lows this week.
Fujairah’s Hi5 spread has seen a greater increase of $12/mt on the day to $89/mt, while Zhoushan’s Hi5 spread has inched down by $3/mt to $88/mt in the past day.
Singapore’s residual fuel oil stocks fell by another 2% in the week to 1 September and dropped below the five-year average, Enterprise Singapore data showed this week.
Lead times remain steady for bunker fuel oils in Singapore, with 7-9 days recommended for VLSFO and HSFO380 supply. LSMGO continues to be more readily available at 4-5 days ahead.
Singapore imported 961,000 bbls more fuel oil on the week, which was a six-week high. Exports rose by 1.33 million bbls to their highest levels since late July.
Brent
Front-month ICE Brent has come up by $1.47/bbl in the past day, to $73.09/bbl at 16.00 SGT (08.00 GMT).
Brent is on track for a 2% gain on the week, helped up by a weaker US dollar. The US dollar has weakened against a basket of other currencies, rendering Brent and other commodities priced in dollars more attractive to investors holding other currencies.
US jobless claims fell to 340,000 last week, the lowest they have been since the beginning of the pandemic, according to Labour Department figures. Federal unemployment benefits for people who lost their jobs because of the pandemic are set to end on Monday.
Some oil platforms and rigs in the Gulf of Mexico are restarting, but about a third of the platforms and half of the rigs are still unmanned after they were evacuated before Hurricane Ida struck, according to estimates from the Bureau of Safety and Environmental Enforcement.
Ports and refineries across Louisiana are working to get power to resume operations. It could take weeks before production levels normalise.
“Crude prices seem to have only one-way to go due to the short-term impact from Ida and when you factor in the oil market will remain in deficit as OPEC+ steadily eases production curbs,” OANDA analyst Ed Moya said.