Prices in East of Suez ports have moved in mixed directions, and prompt supply of all grades remains tight in Fujairah.

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

• VLSFO prices up in Fujairah ($11/mt), and down in Zhoushan ($3/mt) and Singapore ($1/mt)
• LSMGO prices up in Singapore ($3/mt), and down in Fujairah ($4/mt) and Zhoushan ($3/mt)
• HSFO prices down in Zhoushan ($13/mt), Fujairah ($3/mt) and Singapore ($2/mt)

Fujairah’s VLSFO price has risen sharply by $11/mt over the past day, while prices in Zhoushan and Singapore have edged lower. A higher-priced 150-500 mt VLSFO stem fixed in Fujairah today has contributed to push the port's benchmark higher. As a result, Fujairah’s slight VLSFO discount to Zhoushan has flipped to a $10/mt premium, and its discount to Singapore has been erased.

While Fujairah's VLSFO price has climbed, its HSFO price has declined, thereby widening the port's Hi5 spread by $2/mt to $100/mt — the highest so far this year. This Hi5 spread now exceeds those in Singapore at $97/mt and Zhoushan at $80/mt.

Prompt availability in Fujairah remains tight, with lead times for all grades steady at 5-7 days, unchanged from last week. Suppliers in Khor Fakkan are also maintaining recommended lead times of 5-7 days for all grades.

Meanwhile, Jeddah port in Saudi Arabia has sufficient supplies of both VLSFO and LSMGO. In Djibouti, VLSFO supply remains constrained, while LSMGO is more readily available.

Brent

The front-month ICE Brent contract has moved $0.76/bbl lower on the day, to trade at $80.04/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

The latest round of US sanctions against Russia’s energy sector, targeting the country’s largest oil and tanker companies, has supported Brent’s price this week.

Oil market analysts expect these sanctions to tighten over the coming days as Donald Trump prepares to take office on 20 January.

Brent’s price gained more support after the American Petroleum Institute (API) reported a drop in US crude oil inventories, supporting demand growth projections.

Crude oil inventories in the US declined by 2.6 million bbls in the week that ended 10 January, according to the API estimates.

“Crude futures rebounded with Brent trading back above $80, supported by sanctions angst, a potential eight weekly decline in US stockpiles,” analysts from Saxo Bank noted.

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

Downward pressure:

Brent’s price gains were capped ahead of US Consumer Price Index (CPI) data, which will be out later today.

Inflation rate in the US, measured by the change in CPI, is the key focus this week as financial markets await the Federal Reserve's next steps on easing monetary policies in 2025.

The US CPI data is also expected to support the US Dollar, according to market analysts. “Today’s Consumer Price Index (CPI) looms large, poised to bolster the greenback potentially,” SPI Asset Management’s managing partner Stephen Innes said.

A stronger US dollar makes commodities like oil costlier for non-dollar holders, ultimately denting demand in the market.

By Tuhin Roy and Aparupa Mazumder

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