Prices in East of Suez ports have moved in mixed directions, and supply of VLSFO and LSMGO remains good in Malaysia’s Port Klang.

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

• VLSFO prices up in Fujairah ($7/mt) and Singapore ($4/mt), and unchanged in Zhoushan
• LSMGO prices up in Singapore and Fujairah ($7/mt), and down in Zhoushan ($21/mt)
• HSFO prices up in Fujairah ($9/mt) and Singapore ($2/mt), and down in Zhoushan ($3/mt)

Zhoushan's LSMGO price has dropped by $21/mt over the past day, while prices in Fujairah and Singapore have increased. A lower-priced LSMGO stem fixed in Zhoushan has weighed on the benchmark. The price moves have narrowed Zhoushan's LSMGO premium over Singapore by $28/mt, to $10/mt now. Zhoushan's LSMGO discount to Fujairah currently stands at $60/mt.

LSMGO lead times in Zhoushan have improved slightly, decreasing from 4-6 days last week, to 3-5 days now. However, VLSFO lead times have increased from 4-6 days last week, to 5-7 days. Recommended lead times for HSFO have risen from 3-5 days to 5-7 days.

VLSFO availability has improved in Singapore, with lead times dropping to 6-9 days from 10 days last week. HSFO lead times remain steady at 10-13 days, while LSMGO lead times range from 4-14 days.

At Malaysia's Port Klang, VLSFO and LSMGO supplies are plentiful, with some suppliers offering prompt delivery for small volumes. However, HSFO availability remains limited. Singapore’s VLSFO premium over Port Klang is currently at $17/mt.

Brent

The front-month ICE Brent contract has moved $0.93/bbl higher on the day, to trade at $75.85/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent’s price has increased by around $1/bbl on strong hopes of oil demand growth in 2025, as US President-elect Donald Trump, a vocal advocate for expanding domestic oil production, prepares to take office later this month.

Commercial crude oil inventories in the US declined by 1.2 million bbls to touch 415 million bbls for the week ending 27 December, according to data from the US Energy Information Administration (EIA).

A drop in US crude stocks indicates oil demand growth, which could support Brent's price.

Brent’s price has gained “amid expectations of a surge in energy use,” VANDA Insights’ founder and analyst Vandana Hari said.

Downward pressure:

Brent futures felt some downward pressure due to resurfacing demand growth concerns from China.

China's manufacturing purchasing managers' index (PMI) came in at 50.1% in December, noting a decline from 50.3% achieved in November, data from the National Bureau of Statistics (NBS) showed. 

A decline in the PMI reading has raised concerns about demand growth in the country, ultimately weighing down on prices of commodities like oil.

The US December manufacturing data, which will be key for oil price movements, will be out later today.

By Tuhin Roy and Aparupa Mazumder

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