Prices in East of Suez ports have moved up, and availability of all grades has tightened in Zhoushan due to bad weather conditions.

PHOTO: Tanjung Priok Port, Jakarta, Indonesia, photographed from a commercial plane. Getty Images

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

• VLSFO prices up in Singapore ($7/mt), Fujairah ($4/mt) and Zhoushan ($3/mt)
• LSMGO prices up in Fujairah ($9/mt), Zhoushan ($5/mt) and Singapore ($2/mt)
• HSFO prices up in Fujairah ($14/mt), Zhoushan ($5/mt) and Singapore ($4/mt)

Singapore's VLSFO prices have increased by $7/mt in the past day, while VLSFO price gains in Fujairah and Zhoushan have been relatively smaller. Four higher-priced VLSFO stems were fixed in Singapore in a wide range of $19/mt, supporting the benchmark's rise. Singapore's VLSFO price now stands at a marginal premium of $5/mt over Zhoushan's VLSFO and at a slight discount of $6/mt to Fujairah's VLSFO.

Bunker demand in Singapore has experienced an uptick this week. Lead times for VLSFO in the port have exhibited significant fluctuations recently. Most suppliers recommend up to 12 days of lead time, while some can accommodate stems within six days in the port.

Prompt HSFO availability in the port has improved, with recommended lead times now at 4-7 days, halving from 8-14 days last week. Lead times for LSMGO vary widely between 2-10 days in Singapore.

In Indonesian ports such as Jakarta and Surabaya, the availability of VLSFO and LSMGO remains good. Additionally, the port of Balikpapan has an ample supply of VLSFO.

Availability has tightened across all grades in Zhoushan due to adverse weather conditions. Bunker deliveries in Zhoushan's anchorages may be suspended from tonight onwards due to rough weather conditions, according to a source.

Lead times for VLSFO and LSMGO have gone up from 2-5 days recommended in the earlier part of this week to 5-7 days. HSFO now requires even longer lead times of around nine days, according to another source.

Brent

The front-month ICE Brent contract gained $0.69/bbl on the day, to trade at $87.37/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent futures reversed yesterday’s losses after geopolitical concerns resurfaced and war risk premiums once again sparked supply concerns in the global oil market.

Israel allegedly struck a nuclear facility in the Iranian city of Isfahan with a missile yesterday in a retaliatory move, according to several media reports. However, the news remains unconfirmed as the Israeli Defense Forces (IDF) have not claimed any attack.

If confirmed, these reports could raise concerns about the possibility of supply risks translating into actual disruptions, commented ING Bank’s head of commodities strategy Warren Patterson.

“The market has been on edge since Iran launched a missile and drone attack on the Jewish state over the weekend,” said ANZ Bank’s senior commodity strategist Daniel Hynes. “Israel’s response could determine whether oil supplies are ultimately under threat,” he added.

Downward pressure:

Downward pressures acting on Brent today arise from lacklustre demand growth indications after the US Energy Information Administration (EIA) reported an increase in crude oil stocks.

US commercial crude oil inventories increased by 2.74 million bbls to 459.99 million bbls on 12 April – the highest level since June last year, the EIA reported.

The inventory gain was “larger-than-anticipated,” said SPI Asset Management’s managing partner Stephen Innes. “The clear read-through is that [oil] demand is not as rosy as thought and that demand destruction, due to soaring prices at the pump, could be setting in even as we head for summer driving season,” he added.

By Tuhin Roy and Aparupa Mazumder

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