Most prices in East of Suez ports have moved up, and VLSFO and HSFO supply has tightened in Singapore.

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

• VLSFO prices up in Singapore ($6/mt), Fujairah and Zhoushan ($5/mt)
• LSMGO prices up in Singapore, Zhoushan ($7/mt) and Fujairah ($4/mt)
• HSFO prices up in Zhoushan ($7/mt) and Fujairah ($3/mt), and down in Singapore ($1/mt)

VLSFO benchmarks in East of Suez ports have remained largely rangebound over the past day, showing no significant deviations. Zhoushan’s VLSFO is at premiums of $21/mt and $9/mt over Fujairah and Singapore, respectively.

VLSFO availability is stable in Zhoushan amid low demand, with suppliers advising lead times of 5-7 days. In Singapore, VLSFO availability has tightened, with lead times increasing to 6-11 days from 2-8 days last week. Prompt VLSFO availability remains tight in Fujairah, with recommended lead times of around 5-7 days, though some suppliers can still accommodate early deliveries.

Zhoushan’s HSFO price has increased by $7/mt, partly influenced by a higher-priced indication over the past day. The port’s benchmark is at premiums of $6/mt and $17/mt over Singapore and Fujairah, respectively.

HSFO lead times are short in Zhoushan at 3-5 days, while deliveries in Fujairah require 5-7 days. In Singapore, HSFO supply has tightened significantly, with lead times rising from 4-8 days last week to 9-13 days.

Brent

The front-month ICE Brent contract has gained $0.93/bbl on the day, to trade at $73.80/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Oil prices have moved higher on renewed supply jitters in the global oil market after Russia’s Foreign Minister Sergei Lavrov said that Moscow will now enter into a "new phase of Western war" after Ukraine used US-built long-range missiles on targets deep inside the Russian territory over the weekend.

With the onset of a new phase in the Ukraine-Russia conflict, oil prices are expected to gain momentum as supply concerns will keep traders on their toes.

Moreover, Russian President Vladimir Putin updated the country’s nuclear doctrine on Tuesday, establishing conditions under which Russia could strike from the world's biggest nuclear arsenal, Reuters reported.

Brent’s price moved higher after Putin approved an “updated nuclear doctrine expanding conditions for using atomic weapons,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

Downward pressure:

Brent’s price felt some downward pressure after the American Petroleum Institute (API) reported a bigger-than-expected rise in US crude stocks.

Crude oil inventories in the US surged by 4.7 million bbls in the week that ended 15 November, according to API. The weekly inventory build was much higher than market expectations of an 800,000-bbl rise during the week.

A rise in US crude stocks indicates weakness in oil demand, which can put downward pressure on Brent’s price.

Johan Sverdrup oil field in Norway has resumed operations after a power outage led to a halt in production on Monday, Reuters reported. This news has added some downward pressure on Brent.

The oil field produces around 755,000 b/d, “but will take some time to return to full capacity,” two analysts from ING Bank said.

By Tuhin Roy and Aparupa Mazumder

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