Most prices in East of Suez ports have moved up, and availability of all grades remains good across most Japanese ports.

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

• VLSFO prices up in Singapore, Zhoushan ($5/mt) and Fujairah ($4/mt)
• LSMGO prices up in Singapore ($15/mt) and Fujairah ($14/mt), and down in Zhoushan ($7/mt)
• HSFO prices up in Zhoushan ($19/mt), Singapore and Fujairah ($7/mt)

VLSFO benchmarks in East of Suez ports have remained largely stable over the past day, with no significant changes. Singapore’s VLSFO price is currently at a premium of $11/mt over Fujairah, while at a discount of $11/mt compared to Zhoushan.

VLSFO availability in Singapore is limited, with recommended lead times of 12-14 days, though prompt deliveries are possible at higher prices.

In Japan, Tokyo’s VLSFO price remains elevated compared to Singapore and Zhoushan, with premiums of $42/mt and $31/mt, respectively. The higher VLSFO price has reduced demand in Japan, pushing bunker buyers to seek the fuel grade in nearby ports.

While VLSFO is available in most Japanese ports, prompt supply is tight in Nagoya, Yokkaichi and Oita. Availability remains tight in Nagoya and Yokkaichi due to technical issues at the Chiba refinery, a source says. The closure of Idemitsu Kosan's Yamaguchi refinery in March continues to keep VLSFO supply constrained in Oita, the source adds.

HSFO availability is good across Japan, though prompt supply is under pressure in Oita. LSMGO supply remains strong in major ports like Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya, Yokkaichi, Mizushima and Oita.

Typhoon Bebinca is forecast to approach Okinawa over the weekend, potentially affecting the southern ports of Kagoshima, Nagasaki, Kitakyushu and Fukuoka, but a source says there is likely to be no impact on bunkering operations.

Brent

The front-month ICE Brent contract has moved $1.23/bbl higher on the day, to trade at $72.51/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent crude futures moved higher on the back of supply disruption concerns emerging from the US and Libya.

Preventive shutdowns and evacuations of offshore oil production platforms in the US Gulf of Mexico due to concerns over Hurricane Francine’s impact has provided upward pressure to Brent’s price this week. Persistent disruption in Libya’s oil production provided additional support to Brent futures.

“[Brent] crude oil rallied for a second consecutive day as supply risks loomed over the market,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Nearly 42% of the total oil production capacity in the US Gulf of Mexico has been shut as of yesterday, Reuters reports.

“Supply disruptions from Hurricane Francine continue to provide some support,” to oil prices, two analysts from ING Bank remarked.

Downward pressure:

The International Energy Agency’s (IEA) oil market report yesterday reinforced a “bearish picture” in the global oil market, analysts said. Brent’s price gains were partially capped after the Paris-based energy agency cut the global oil demand growth outlook.

It now expects global oil demand to grow by 900,000 b/d, with total consumption expected to reach 103 million b/d in 2024, noting a decline of 70,000 b/d from its previous month’s projection. This decline can be attributed to a slowdown in China’s economic growth.

“In contrast to OPEC’s relatively positive outlook earlier this week, IEA said demand growth is slowing as China’s economy cools,” Hynes remarked.

By Tuhin Roy and Aparupa Mazumder

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