VLSFO prices in East of Suez ports have been rangebound, and VLSFO and LSMGO grades are readily available in several Taiwanese ports.

PHOTO: Cargo ships in Victoria Harbour of Hong Kong, China. Getty Images

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

• VLSFO prices down in Singapore ($4/mt), and Fujairah and Zhoushan ($3/mt)
• LSMGO prices up in Singapore ($2/mt), and down in Zhoushan ($13/mt) and Fujairah ($8/mt)
• HSFO prices up in Fujairah ($2/mt), and down in Zhoushan ($3/mt) and Singapore ($1/mt)

VLSFO benchmarks in East of Suez ports have shown stability in the past day. Zhoushan’s VLSFO price remains at near parity-levels with both Singapore and Fujairah.

LSMGO prices in Zhoushan and Fujairah have decreased, while the product price in Singapore has held steady. Zhoushan’s LSMGO price has dropped by a significant $13/mt. This decrease was influenced by a lower-priced LSMGO stem fixed today, which pulled the benchmark down. Zhoushan’s LSMGO price is now at a discount of $78/mt to Fujairah and at a premium of $9/mt over Singapore.

In Zhoushan, all bunker fuel grades are readily available with lead times of 2-5 days, unchanged from last week.

Similarly, VLSFO and LSMGO grades are promptly available in Taiwanese ports of Hualien, Kaohsiung, Taichung, and Keelung. In Hong Kong, all fuel grades are available with recommended lead times of about seven days. Some suppliers can offer early deliveries for smaller stems.

Brent

The front-month ICE Brent contract inched $0.27/bbl lower on the day, to trade at $90.53/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent has remained at elevated levels this week on the back of escalating geopolitical conflicts that have sparked concerns over supply disruption in major oil-producing regions of the world.

Earlier this week, Iran announced retaliation for recent Israeli attacks on the Iranian consulate in Syria. Iran has also threatened to restrict access to the Strait of Hormuz, a vital chokepoint for global oil transit.

Around 20% of global oil supplies transit through the strait on an average daily basis, according to the US Energy Information Administration (EIA). Any further attacks on commercial shipping in the region can push Brent’s price higher, according to analysts.

The US has issued a warning for its citizens in Israel and asked them not to travel outside greater Tel Aviv, Jerusalem, and Be'er Sheva, amid heightened regional threats.

“[Brent] oil prices remained elevated, hovering near 2024 highs, fueled in part by geopolitical tensions after the US issued warnings of a potential attack by Iran on Israeli assets,” SPI Asset Management’s managing partner Stephen Innes said.

Downward pressure:

Brent futures edged lower, reflecting the market’s concerns over subdued oil demand in the US amid expectations of a delay in interest rate cut.

The US consumer price inflation strengthened in March, according to the latest Consumer Price Index (CPI) data. Inflation rose by a stronger-than-expected 3.5% in March, according to the US Bureau of Labor Statistics.

Higher consumer price inflation in the US could lead the Federal Reserve (Fed) to delay rate cuts, which could further dampen oil demand.

“Persistent inflationary pressures, particularly in the service sector, have led investors to revise their expectations, now anticipating that the Federal Reserve may delay interest rate cuts until the year's fourth quarter,” Innes added.

By Tuhin Roy and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online