Bunker prices have gone up across East of Suez ports today, as Brent regains some of yesterday’s losses with support from the supply crunch in the US Gulf and robust Chinese crude demand.
Changes on the day to 16.00 SGT (08.00 GMT) today:
- VLSFO prices up in Singapore ($15/mt), Zhoushan ($8/mt) and Fujairah ($2/mt)
- LSMGO prices up in Singapore ($14/mt), Zhoushan ($12/mt) and Fujairah ($8/mt)
- HSFO380 prices up in Singapore ($9/mt), Fujairah ($6/mt), and down in Zhoushan ($6/mt)
Zhoushan’s HSFO380 price has dropped to parity with Singapore’s price for the grade.
Availability of the high sulphur fuel grade has tightened in both ports recently. Two of the five suppliers that stock HSFO380 in Zhoushan do not have product to supply now. HSFO380 is particularly tight for prompt supply in Singapore, where recommended lead times stretch up to eight days.
Singapore’s Hi5 spread has added $3/mt on the day to stand at $93/mt now, after its VLSFO price saw a sharp rise due to a higher-priced stem for 50-150 mt.
Brent
Front-month ICE Brent has climbed $0.83/bbl higher on the day, to $72.55/bbl at 16.00 SGT (08.00 GMT) today.
The futures contract is up with support from capped production in the Gulf of Mexico and strong Chinese oil imports data.
Production is gradually coming back online in the Gulf as workers return, but 1.53 million b/d, or 84%, of production remains shut in after platforms and rigs were evacuated when Hurricane Ida was approaching.
According to estimates by the US Bureau of Safety and Environmental Enforcement, 18% of platforms and 45% of rigs in the Gulf are still unmanned.
Power outages and material damage from Ida still keeps five Louisiana refineries across Alliance, Norco, St. Charles, Meraux and Chalmette shut, Argus Media reports.
Chinese import data provided some upside for Brent. The world’s biggest crude importer took 10.49 million b/d of crude in August, an 8% increase from July, according to Reuters. Expectations of easing lockdown restrictions and Covid-19 under control has prompted Chinese crude buyers to target extra supplies at higher prices from November.
Brent has bounced back after downward pressure yesterday. Saudi Aramco slashed oil selling prices to Asia amid weaker demand from some countries with partial lockdown measures in place.