Most prices in East of Suez ports have moved up, and availability has improved in Zhoushan.

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

• VLSFO prices up in Zhoushan ($10/mt), Fujairah ($4/mt) and Singapore ($2/mt)
• LSMGO prices up in Zhoushan ($12/mt), Singapore ($7mt) and Fujairah ($5/mt)
• HSFO prices up in Singapore and Zhoushan ($5/mt), and down in Fujairah ($1/mt)
• B24-VLSFO at a $157/mt premium over VLSFO in Singapore

Zhoushan’s VLSFO price has risen by $10/mt in the past day, the steepest increase among the three major Asian bunker ports. This has moved Zhoushan’s VLSFO price from near parity to premiums of $9/mt over Fujairah and $8/mt over Singapore.

VLSFO availability in Zhoushan is good, with lead times improving from 4–6 days last week to around 3–5 days now. LSMGO and HSFO lead times have also shortened, from 4–6 days to 3–5 days.

Meanwhile, Taiwan's Kaohsiung continues to price its VLSFO at a premium of $18/mt over Hong Kong.

In Kaohsiung, deliveries for both VLSFO and LSMGO require lead times of three days. Hong Kong’s advised lead times for all fuel grades remain at around seven days, the same as last week.

VLSFO and LSMGO supplies in Taiwan's Hualien, Taichung and Keelung remain stable, with lead times of about two days, unchanged from last week.

Brent

The front-month ICE Brent contract has moved $0.70/bbl higher on the day, to trade at $71.87/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent's price has risen on the back of instability in the Middle East and China's plans for additional economic stimulus.

US President Donald Trump has vowed to continue strikes against Yemen’s Houthis unless they halt their attacks on ships in the Red Sea. On Monday, Trump stated he would hold Iran responsible for any attacks carried out by the Houthi armed group, which it backs in Yemen. This contributed to the rise in Brent futures.

Oil prices were “aided by concerns of a wider Middle East conflict,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

“Along with US strikes on the Houthis in Yemen, several factors provided support to the market,” analysts from ING Bank said.

Meanwhile, Israeli airstrikes in Gaza killed at least 200 people, Reuters reported citing Palestinian health authorities. Tuesday’s attacks ended a week-long standoff over extending a ceasefire deal that had paused fighting since January.

China’s State Council announced a “special action plan” aimed at boosting domestic consumption, including measures to increase residents’ income, Reuters reported.

“China unveiled plans to revive consumption, while Chinese retail sales and fixed asset investment growth came in stronger than expected,” the ING Bank analysts noted.

Downward pressure:

Oil investors' focus is now on talks between US President Donald Trump and Russian President Vladimir Putin later today on ending the Ukraine war.

Market analysts believe a potential peace deal could ease sanctions on Russia and bring its crude supply back to the global market, putting downward pressure on prices.

“Trump is scheduled to talk to President Putin today about a proposed ceasefire. Energy markets will be watching closely for any progress -- particularly whether a potential peace deal might include the resumption of some Russian energy flows,” two ING Bank analysts commented.

By Tuhin Roy

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