Bunker prices are markedly up across the region with support from a $2/bbl Brent bump.

PHOTO: Various cargo ships waiting to load and unload in the harbour at the Port of Singapore. Getty Images

Changes on the day to 17.00 SGT (09.00 GMT) today:

• VLSFO prices up in Fujairah ($18/mt), Singapore ($16/mt) and Zhoushan ($15/mt)
• LSMGO prices up in Singapore ($22/mt), Fujairah ($21/mt) and Zhoushan ($11/mt)
• HSFO prices up in Zhoushan ($17/mt), Singapore ($15/mt) and Fujairah ($10/mt)

VLSFO prices are up sharply across major East of Suez ports. A prompt 500-1,500 mt stem fixed in Singapore has boosted its benchmark. The stem will be delivered in 3-7 days and product has been tight for prompt deliveries.

HSFO is even tighter in Singapore and requires 7-11 days of lead time for wide coverage. A non-prompt 500-1,500 mt HSFO stem was done at a higher level and helped pull the benchmark up.

Several LSMGO stems have been done in Singapore, coming in in a relatively narrow $4/mt range, and helping to give significant rise to its benchmark price.

Singapore’s price premium for a B24-VLSFO UCOME blend over pure VLSFO has been steady at $110/mt in the past day. That is down by around $15/mt from a month ago. Singapore is now the world’s biggest bunker port also for biofuel blends after it dethroned Rotterdam in the third quarter.

Brent

Front-month ICE Brent has traded up by $2.01/bbl on the day to stand at $74.66/bbl at 09.00 GMT today. But Brent is set to finish the week $1/bbl lower than the last.

Upward pressure:

Iran could hit Israel in retaliation for striking it, Axios reports. This could stoke renewed supply fears into market participants.

OPEC+ may not expand oil supply in December as planned. Weak demand has given grounds for holding back. A decision on this is expected next week.

Downward pressure:

US oil production hit a record high of 13.4 million b/d in August, erasing a previous 13.3 million b/d record.

By Erik Hoffmann

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