Bunker prices in East of Suez ports have largely tracked Brent’s upward movement, and availability of all fuel grades is tight in Fujairah.

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

• VLSFO prices up in Singapore ($15/mt), Zhoushan ($13/mt) and Fujairah ($5/mt)
• LSMGO prices up in Singapore ($13/mt), Fujairah ($9/mt), and down in Zhoushan ($2/mt)
• HSFO prices up in Fujairah ($4/mt), Singapore ($1/mt), and down in Zhoushan ($8/mt)

LSMGO prices in Singapore and Fujairah have increased in the past day, while the grade’s price in Zhoushan has inched $2/mt lower. Fujairah’s LSMGO is at premiums of $71/mt and $89/mt over Zhoushan and Singapore, respectively.

Bunker fuel availability for all grades is tight in Fujairah, with recommended lead times of around five days. Supply is good in Khor Fakkan, where suppliers are advising lead times of 3-4 days.

Bunker demand is slightly weak in Djibouti, according to a source. LSMGO supply in the port is good. In the Saudi Arabian port of Jeddah, prompt availability of HSFO is said to be good.

Brent

The front-month ICE Brent contract has gained $1.17/bbl on the day, to trade at $73.82/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

The ceasefire deal between Israel and Iran-backed Hezbollah militants, coupled with renewed geopolitical conflicts rising in other parts of the world has collectively lent support to Brent’s price today.

The Israel Defense Forces (IDF) warned of resuming the conflict with Hezbollah if the ceasefire collapses. This news comes as rebel groups from Syria have threatened to unite with other armed factions in neighbouring oil-producing nations.

“The freshly-erupted internal war in Syria continued to fester… while Israel and the Hezbollah militants exchanged attacks in violation of their ceasefire,” VANDA Insights’ founder and analyst Vandana Hari remarked.

South Korea’s President Yoon Suk Yeol declared martial law in the country yesterday, following internal issues within the parliament. The martial law was immediately lifted on Wednesday following a bipartisan parliamentary vote that rejected the martial law. Growing political tensions in the country could impact the country's refining capability or imports.

Brent’s price also found support as anticipation grew around the upcoming OPEC+ meeting. The eight members cutting output by 2.2 million b/d are now expected to extend production cuts through the first quarter of 2025, Reuters reported citing sources.

“Oil prices are rising on reports that suggest that OPEC-plus will extend its production cuts until the end of the first quarter of next year,” Price Futures Group’s senior market analyst Phil Flynn said.

Downward pressure:

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

Crude oil inventories in the US rose by 1.2 million bbls in the week that ended 29 November, according to API estimates. The weekly inventory rise contradicted market expectations of a 2.06 million-bbl fall during the week.

A surge in US crude stocks indicates a slowdown in oil demand growth, which can lower Brent's price.

The broadly followed US government data on crude oil stockpiles from the US Energy Information Administration (EIA) is due later today.

By Aparupa Mazumder

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