Bunker prices in East of Suez ports have moved in mixed directions, and fuel availability is steady in China’s Zhoushan port.

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

• VLSFO prices up in Zhoushan ($7/mt), Fujairah ($5/mt), and down in Singapore ($1/mt)
• LSMGO prices up in Fujairah ($1/mt), and down in Singapore ($14/mt) and Zhoushan ($5/mt)
• HSFO prices up in Zhoushan ($3/mt) and Singapore ($1/mt), and unchanged in Fujairah

Fujairah's LSMGO price has increased some over the weekend, while prices in Zhoushan and Singapore have moved down. Fujairah’s LSMGO price is at premiums of $63/mt and $92/mt over Zhoushan and Singapore, respectively.

All bunker fuel grades are available in the Chinese port of Zhoushan, with several suppliers advising lead times of 5-7 days for VLSFO and 4-6 days for LSMGO.  

In northern China, VLSFO and LSMGO grades are available for prompt deliveries at Dalian and Qingdao ports, while HSFO supply is limited in Qingdao. Bunker fuel availability is tight in Tianjin.

LSMGO is readily available in Shanghai, but VLSFO and HSFO are tight, a trader said. Lead times of about seven days are advised for all bunker grades in Hong Kong.

Prompt availability for all grades remains tight in the UAE port of Fujairah, with recommended lead times of 5-7 days. Similar lead times for all grades are also suggested in the port of Khor Fakkan.

Brent

The front-month ICE Brent contract has shed $0.38/bbl on the day from Friday, to trade at $72.45/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent’s price gained some upward thrust as Russia and Ukraine continued to exchange airstrikes on critical energy facilities over the weekend.

A Ukrainian drone hit the Atlas oil depot in the Kamensky district of Russia’s Rostov region, the Ukrainian army’s General Staff said on its official Telegram channel.

The attack caused “at least” two fires in the energy facility, the Ukrainian army said.

Besides, oil market participants are awaiting OPEC's next move. The Saudi Arabia-led producers’ group is due to virtually meet on 5 December, to discuss its plans to gradually phase out the ongoing 2.2 million b/d voluntary production cut.

“Traders are braced for OPEC to extend its current production cuts, a decision that could keep a short-term floor under prices,” SPI Asset Management’s managing partner Stephen Innes said.

Downward pressure:

The global oil market continues to “trade in a fairly narrow range,” two analysts from ING Bank remarked, as a ceasefire deal between Israel and Iran-aligned Hezbollah armed group, “which appears to be holding, will be weighing on prices.”

The ceasefire agreement achieved last week was mediated by the US and France, the White House said in a statement. However, it mentioned that the deal did not extend to the ongoing conflict between Israel and Hamas in the Gaza Strip.

Nonetheless, the market’s focus will remain on further developments in the broader geopolitical landscape of the Middle East – a key oil-producing hub.

“[Oil] trading landscape [will remain] in a state of cautious anticipation until the next major market-moving event unfolds,” Innes said.

By Aparupa Mazumder

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