Regional bunker benchmarks have moved lower, and prompt availability of VLSFO has improved in Singapore.

PHOTO: Bunker barge at berth in Fujairah, UAE. Port of Fujairah

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

• VLSFO prices down in Singapore ($9/mt), Fujairah ($8/mt) and Zhoushan ($1/mt)
• LSMGO prices down in Zhoushan ($23/mt), Singapore ($15/mt) and Fujairah ($8/mt)
• HSFO prices down in Zhoushan ($9/mt), Fujairah ($5/mt) and Singapore ($4/mt)

Bunker benchmarks across three major East of Suez ports have declined in the past day, following a sharp fall in Brent futures. Singapore's VLSFO price has dropped by $9/mt, marking the steepest decline among the three major Asian bunker hubs.

Two VLSFO stems were fixed in a range of $10/mt in Singapore yesterday. A stem booked at the lower end of the range has contributed to the decline in the grade’s price. Currently, Singapore’s VLSFO premium over Zhoushan stands at $5/mt, while its product price is at par with Fujairah.

Prompt availability of VLSFO has improved slightly in Singapore, with several suppliers recommending lead times of up to 12 days. However, some suppliers can accommodate stems in even three days in the port. Last week, most suppliers advised 9-13 days of lead times. Prompt availability for HSFO remains tight in Singapore, with unchanged lead times of 8-14 days, while LSMGO has shorter lead times of 3-9 days.

All bunker fuel grades remain available for prompt deliveries in China’s Zhoushan port, with multiple suppliers suggesting lead times of 2-5 days, consistent with the previous week.

In the Middle East, prompt availability for all bunker fuel grades remains tight in the UAE port of Fujairah, with several suppliers projecting lead times of 7-10 days. Despite tight supply, overall bunker demand is sluggish there, a source says.

Brent

The front-month ICE Brent contract moved $1.46/bbl lower on the day, to trade at $85.20/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are scheduled to meet on 3 April to discuss their output policies for the remainder of the year. Announcement of this meeting has contributed to Brent’s upward movement today.

Analysts anticipate members of the OPEC+ group to maintain their production levels at the upcoming meeting.

“Investors have purchased oil at the fastest rate for more than four years, amid optimism that Saudi Arabia and its OPEC+ allies will continue to restrict production while an improving economic outlook boosts consumption,” Reuters’ oil market analyst John Kemp commented.

Brent futures gained more support after Israel's Prime Minister Benjamin Netanyahu refused to participate in ceasefire talks with Hamas.

“Ceasefire talks between Israel and Hamas broke down again, with Israeli Prime Minister Benjamin Netanyahu accusing the group of extreme demands,” ANZ Bank’s senior commodity strategist Daniel Hynes noted.

Downward pressure:

Brent futures shed previous day's gains amid concerns over sluggish demand in the US.

US commercial crude inventories increased by 9.3 million bbls in the week ended 22 March, according to the American Petroleum Institute (API) data cited by Trading Economics. The surge in crude inventories suggests slow demand growth in the world’s largest oil-consuming nation, which could put downward pressure on Brent’s price.

“A sharp rise in U.S. crude inventories and expectations for a potential inaction by OPEC+ in its output policy next week saw further unwinding in oil [Brent] prices in today’s session, as profit-taking accelerates following a strong rally in mid-March,” IG Markets’ market strategist Jun Rong Yeap remarked.

By Aparupa Mazumder and Tuhin Roy

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