Most prices in East of Suez ports have moved up, and the availability of VLSFO and LSMGO remains good across several South Korean and Australian ports.

PHOTO: An aerial view of Melbourne central business district, Victoria, Australia. Getty Images

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

• VLSFO prices up in Singapore and Zhoushan ($6/mt), and down in Fujairah ($9/mt)
• LSMGO prices up in Fujairah ($8/mt) and Singapore ($7/mt), and down in Zhoushan ($2/mt)
• HSFO prices up in Zhoushan ($9/mt), Singapore and Fujairah ($6/mt)
  

Fujairah’s VLSFO price has dropped by $6/mt in the past day, while VLSFO prices in Singapore and Zhoushan have increased. Two lower-priced VLSFO stems fixed in Fujairah have contributed to drag the benchmark down. Consequently, Fujairah's VLSFO premiums over Zhoushan and Singapore's VLSFO prices have been erased and now stand at discounts of $9/mt and $8/mt, respectively.

Prompt availability remains tight across all grades in Fujairah, with several suppliers running low on stocks. Lead times of around 9-10 days are recommended for all grades, which is almost unchanged from last week.

In South Korean ports, all bunker grades remain readily available, with most suppliers advising lead times of 4-5 days for all grades, similar to last week.

In Oceania, in the ports of Kwinana and Fremantle in Western Australia, VLSFO and LSMGO supply is good, with lead times of 7-8 days recommended in both ports. In Sydney, New South Wales, LSMGO is readily available, while HSFO availability is restricted. In Victoria, Melbourne has abundant VLSFO and LSMGO stocks, and Geelong also has ample availability of VLSFO. However, prompt HSFO supply faces challenges in both Melbourne and Geelong.

In Queensland, both the ports of Brisbane and Gladstone boast sufficient stocks of VLSFO and LSMGO, with suggested lead times of 7-8 days. HSFO availability remains limited in Brisbane.

Brent

The front-month ICE Brent contract gained $0.90/bbl on the day, to trade at $89.12/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent futures gained this week due to escalating geopolitical tensions in the Middle East.

Risks related to oil security grew after Israel ramped up airstrikes on southern Gaza’s Rafah region yesterday, Reuters reported.

A retaliation from Iran and its proxies will not be too surprising now, according to analysts.

Brent's price gained additional support from the US treasury secretary Janet Yellen's latest comments. Yellen told Reuters that the “weak” first quarter US gross domestic product (GDP) data may be revised higher. "The U.S. economy continues to perform very, very well," Reuters quoted Yellen as saying.

Downward pressure:

Brent's price felt some downward pressure as US economic data disappointed the oil market.

The US GDP recorded a growth rate of 1.6% in the first quarter of this year, while analysts expected a growth of 2.4%, Reuters reported.

The data led to expectations in the market that the US Federal Reserve (Fed) would not cut interest rates anytime soon. But Yellen's remarks waned those concerns. Higher interest rates in the US can potentially dampen demand for dollar-denominated commodities like oil.

Brent’s prices dropped in early morning trade as “US GDP data prompted stagflation concerns,” said Saxo Bank’s head of FX strategy Charu Chanana.

By Tuhin Roy and Aparupa Mazumder

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