Bunker prices in East of Suez ports have moved higher in the past day, and demand for all grades has improved in Singapore.

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

• VLSFO prices up in Fujairah ($10/mt), Singapore ($9/mt) and Zhoushan ($8/mt)
• LSMGO prices up in Singapore ($31/mt), Fujairah ($11/mt) and Zhoushan ($1/mt)
• HSFO prices up in Fujairah ($8/mt), Singapore and Zhoushan ($4/mt)

LSMGO prices in East of Suez ports have tracked Brent’s price gains and moved higher. Singapore’s LSMGO price has risen by $31/mt, while the grade's price in Fujairah has seen a rise of $11/mt. Zhoushan's LSMGO price is at a $76/mt discount to Fujairah.

Bunker demand in Singapore has been good this week, a source said. Prompt availability for VLSFO is still tight at the port, with recommended lead times of around 11 days. HSFO requires lead times of 7–14 days, the same as the previous week. Shorter lead times of 5-8 days have made LSMGO more readily available in Singapore.

A similar situation has developed in the UAE’s Fujairah port, where prompt availability remains tight. Lead times of 5-7 days are recommended for all grades. There is ample LSMGO supply in the Omani ports of Sohar, Salalah, Muscat and Duqm.

Brent

The front-month ICE Brent contract has gained $0.91/bbl on the day, to trade at $72.65/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent crude’s price moved higher after the US Energy Information Administration (EIA) reported a draw in US crude stocks. Commercial crude oil inventories in the country dropped by 515,000 bbls to touch 426 million bbls for the week ending 25 October, the EIA reported.

A drop in US crude stocks indicates growth in oil demand, which can put upward pressure on Brent’s price. Sentiment in the crude oil market was supported by an “expected drawdown in US inventories,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

On the supply front, attention is likely to shift back to OPEC, which is scheduled to gradually unwind output cuts from December. Brent could get a boost as oil market analysts expect the Saudi Arabia-led group to maintain crude oil production levels and put a floor under oil.

“The focus remains on the OPEC+ production numbers and outlook and the group’s response to recent price weakness,” two analysts from ING Bank said.

Downward pressure:

Brent gains have been capped marginally amid ongoing negotiations over a ceasefire deal for the Gaza Strip. Israeli Prime Minister Benjamin Netanyahu has revealed plans to resolve the conflict in Lebanon, according to media reports.

“The plan, if agreed, would lead to a 60-day suspension of [Israel-Lebanon] hostilities while mediators craft a lasting peace deal to remove Hezbollah from the border region and bolster US peacekeepers there,” Hynes said.

Meanwhile, the market has regained confidence from Iran’s delayed response to Israel’s latest round of airstrikes. The news has eased some supply-related concerns and put downward pressure on Brent.

By Aparupa Mazumder

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