Prices in most East of Suez ports have moved down, and prompt availability of all grades remain tight in Fujairah and Zhoushan.

PHOTO: Asyad Terminal in Duqm. Asyad Terminal

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

• VLSFO prices up in Fujairah ($3/mt), and down in Singapore ($6/mt) and Zhoushan ($5/mt)
• LSMGO prices up in Singapore ($2/mt), and down in Fujairah ($19/mt) and Zhoushan ($4/mt)
• HSFO prices up in Singapore ($3/mt), and down in Fujairah ($16/mt) and Zhoushan ($8/mt)

Over the weekend, Fujairah's VLSFO price have remained broadly stable, while the grade's prices in Singapore and Zhoushan have decreased some. Fujairah's VLSFO discounts to both Singapore and Zhoushan have been erased and now stand at near parity levels.

Despite slightly low demand, prompt availability remains tight across all grades in Fujairah, with recommended lead times of around 7-10 days.

LSMGO prices in Singapore and Zhoushan have remained largely steady over the weekend. Zhoushan’s LSMGO price stands at a premium of $37/mt over Singapore and at a discount of $86/mt to Fujairah.

Availability of all grades in Zhoushan remains under pressure, with recommended lead times of around eight days.

VLSFO and LSMGO availability in Taiwanese ports such as Hualien, Kaohsiung, Taichung, and Keelung remains normal, with recommended lead times of about four days, similar to last week.

Brent

The front-month ICE Brent contract lost $0.17/bbl on the day from Friday, to trade at $88.95/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Reports that Israel is ramping up plans for further ground and air assaults on southern Gaza’s Rafah region and the ongoing concerns about Ukraine’s attacks on Russia’s oil infrastructure have continued to support Brent’s price.

“Tensions in the Middle East remain elevated despite tit-for-tat attacks between Israel and Iran not leading to any escalation in the Israel-Hamas war,” Saxo Bank’s head of FX strategy Charu Chanana said. “Supply risks are also emerging as Russia and Ukraine target each other’s energy infrastructure,” she added.

Downward pressure:

Brent futures lost upward momentum after the US Federal Reserve’s (Fed) chair Jerome Powell “expressed concerns” about persistent inflation in the world’s largest oil consuming nation, market analysts said.

Powell also emphasised that interest rate cuts “would be on hold until the Fed gains greater confidence in inflation moving sustainably toward the 2 percent target,” SPI Asset Management’s managing partner Stephen Innes said.

Members of the US central bank are scheduled to convene over the next two days to discuss interest rate cuts at the Federal Open Market Committee (FOMC) meeting.

“The [oil] market has virtually priced in a more hawkish Fed scenario; other than removing all cuts from the dot plot, it’s unlikely the Fed will hawkishly surprise the market,” Innes added.

Higher interest rates can dampen global demand by increasing the cost of commodities like oil for non-dollar holders.

By Tuhin Roy and Aparupa Mazumder

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