Bunker prices in East of Suez ports have moved in mixed directions, and LSMGO supply is good across several Japanese ports.

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

• VLSFO prices up in Zhoushan ($1/mt), unchanged in Singapore, and down in Fujairah ($6/mt)
• LSMGO prices up in Zhoushan and Singapore ($5/mt), and unchanged in Fujairah
• HSFO prices up in Zhoushan ($3/mt), Fujairah ($2/mt) and Singapore ($1/mt)

Zhoushan's VLSFO price has inched $1/mt up over the past day, while the grade’s price in Fujairah has fallen by $6/mt and has remained unchanged in Singapore. Zhoushan’s VLSFO price remains at premiums over Fujairah and Singapore.

Availability of all fuel grades is tight in Singapore, despite low demand, according to a source. Most suppliers are recommending lead times of about 10 days for VLSFO. Some can accommodate prompt deliveries, typically at a higher price.

LSMGO is more readily available in Singapore, with lead times of up to five days. HSFO parcels have lead times of 2 to 6 days, largely unchanged from the previous week.

All bunker grades are readily available in Zhoushan, with suppliers advising lead times of 5-7 days for VLSFO and HSFO, and 3-5 days for LSMGO. 

LSMGO supplies in Japan remain robust across key ports including Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya, Yokkaichi, Mizushima and Oita. VLSFO availability is steady, though prompt deliveries are limited in Oita. Meanwhile, prompt HSFO supply is said to be tight in Nagoya, Yokkaichi, Mizushima and Oita, according to a source.

Brent

The front-month ICE Brent contract has moved $0.20/bbl higher on the day, to trade at $72.65/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent’s price found some support as the geopolitical conflict in the Middle East intensified. The crucial ceasefire deal between Israel and Iran-aligned Hezbollah militants appears to be in a delicate condition, following cross-border strikes from both sides.

The Israel Defense Forces (IDF) said that the Lebanon-based militant group launched projectiles into Israeli territory on Monday, violating the terms of the ceasefire agreement between the two countries.

“Geopolitical risk is still high as the Israeli cease fire in Lebanon broke down,” Price Futures Group’s senior market analyst Phil Flynn said.

Analysts and traders also await OPEC’s ministerial meeting on Thursday where the group is expected to extend the ongoing production cut.

The eight members collectively cutting output by 2.2 million b/d are likely to continue through the first quarter of 2025, according to a Reuters report.

Downward pressure:

The crude oil supply outlook remains uncertain, with market analysts anticipating that the upcoming OPEC+ meeting will be crucial in determining price direction.

While the Saudi Arabia-led group had initially planned to gradually reverse the 2.2 million b/d production cut in October, it opted instead to extend the cuts through the end of the year to bolster oil prices.

OPEC+ has rescheduled its meeting to discuss the 2025 output policy. Originally planned for 1 December, the meeting will now be held virtually on 5 December.

“The oil balance does not need this additional supply as it will push the market into a large surplus,” two analysts from ING Bank said. “The challenge is that the group needs to find a balance between trying to support the market and limiting its loss in market share,” they added.

By Aparupa Mazumder

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