Bunker prices have recorded gains across global bunkering hubs today, tracking higher Brent crude values.
Changes in the day to 08.00 GMT today:
- VLSFO prices up in Rotterdam ($10/mt), Gibraltar ($9/mt), Fujairah ($8/mt), Houston ($6/mt) and Singapore ($3/mt)
- LSMGO prices up in Houston ($18/mt), Fujairah ($10/mt), Gibraltar ($9/mt), Rotterdam ($7/mt) and Singapore ($5/mt)
- HSFO380 prices up in Singapore ($10/mt), Fujairah ($9/mt), Gibraltar ($6/mt), Rotterdam ($3/mt) and steady in Houston
Singapore’s Hi5 spread has narrowed by $7/mt on the day and dropping below $100/mt, as HSFO380 has saw a sharper rise on the day.
Fujairah’s Hi5 spread has maintained its levels today, while the price difference between the two fuel grades has widened by $7/mt in Rotterdam today.
Fuel oil stocks dropped to their lowest levels since late February 2021 in the bunkering hub, data from Singapore Enterprise showed this week. Fuel oil inventories fell by 4% on the week to 25 August reaching a six-month low of 21.18 million bbls.
Lead times remain steady for fuel oils in Singapore, with 7-9 days recommended for VLSFO and HSFO supply, while LSMGO continues to be more readily available at 4-5 days ahead.
Fujairah’s lead time for HSFO380 have gone up today, with suppliers’ earliest delivery dates being around 5 September. Low sulphur fuel oils require up to seven days ahead in the UAE bunkering hub now.
The Meishan terminal at Ningbo-Zhoushan reopened on Wednesday, after it closed down to all inbound and outbound traffic due to a port worker testing positive for Covid-19 in the port two weeks ago. Vessels have started berthing in the terminal as cargo operations have resumed in the port, but with bunkering operations still not allowed in the terminal.
Zhoushan’s HSFO380 and VLSFO remain in tight supply, with replenishment of both expected towards the end of the month. LSMGO is the only fuel grade workable in the Chinese port at the moment.
Brent
Front-month ICE Brent has added just $0.12/bbl to 08.00 GMT on the day, reaching $72.11/bbl.
The futures contract is heading for an 8% weekly gain, and trading around $72/bbl during Friday’s session. Brent prices have edged higher supported in anticipation of Storm Ida currently developing in the Caribbean and expected to move inner into the US Gulf, disrupting oil production.
The Storm is expected to intensify into a Category 3 hurricane and hit the US Gulf Coast later in the weekend.
Oil and gas companies, including BP and Shell, have already started evacuation plans from offshore platforms and halted production, according to Reuters.