East of Suez bunker prices have mostly bounced back with rising Brent values in the past day, and an incoming typhoon threatens bunker disruptions in Japan over the weekend.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO prices up in Fujairah ($11/mt), Singapore ($9/mt) and Zhoushan ($6/mt)
- LSMGO prices up in Fujairah ($18/mt) and Singapore ($10/mt), and down in Zhoushan ($8/mt)
- HSFO380 prices up in Fujairah ($13/mt), Zhoushan ($8/mt) and Singapore ($5/mt)
Another typhoon, Mirinae, is approaching Japan and expected to make landfall on its eastern coast tomorrow evening local time, according to Japan Meteorological Agency.
Bunker suppliers in Tokyo Bay are bracing for high waves, heavy rains and strong winds tomorrow and Sunday. Bunkering will likely be delayed, but could resume on Monday with calmer weather. Fuel availability remains good across grades in Tokyo.
Tokyo’s VLSFO price has moved up from $9-11/mt premiums over Singapore and Zhoushan on 1 August, to $14-16/mt today.
Fujairah’s VLSFO price has gained against Singapore and Zhoushan. Fujairah had the fuel grade at significant discounts to the two other ports earlier this week, but the discounts have now narrowed to $3-4/mt.
VLSFO and LSMGO remain tight for prompt dates in Fujairah. HSFO380 is particularly tight, and has risen to ever higher regional premiums. In the past day, Fujairah’s HSFO380 price has risen by $5/mt against Singapore, to a $54/mt premium. It has moved up by $8/mt against Zhoushan, to a $46/mt premium.
The earliest expected delivery date in Fujairah is now 12 days out, compared to 7-8 days in Singapore and 6-9 days in Zhoushan.
Brent
Front-month ICE Brent has recovered some of its losses in the previous session by rising $1.27/bbl on the day, to $71.63/bbl at 16.00 SGT (08.00 GMT) today.
The futures contract is heading for a 5% drop on the week – the biggest weekly decline since March.
Renewed and extended lockdown measures in China and Japan have concerned investors and triggered a gradual selloff this week. New daily Covid-19 cases in in China rose to their highest point since January. Major Chinese cities across 17 provinces have been placed in isolation to curb the spread. Flights and other modes of transport have been restricted, capping fuel demand in the world’s biggest oil importing country.
While new daily cases surged to six-week highs of more than 150,000 this week in the US, new lockdowns are unlikely, the country’s top immunologist Anthony Fauci said.
Escalating tensions in the Middle East has lent some support to Brent in the past day. Israeli fighter jets fired at Lebanese rocket launch sites yesterday in retaliation to previous Lebanese rockets.
An oil tanker was attacked off the coast of Oman a week earlier, killing two people, and prompting Israel, the US and UK to point fingers at Iran. Israel said it has not ruled out a strike on Iran, which could further derail US-Iranian nuclear talks.