Prices in East of Suez ports have tracked Brent’s downward movement, and prompt availability of all grades is tight in Fujairah.

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

• VLSFO prices down in Zhoushan ($19/mt), Fujairah ($9/mt) and Singapore ($6/mt)
• LSMGO prices down in Zhoushan ($19/mt), Fujairah ($17/mt) and Singapore ($9/mt)
• HSFO prices down in Zhoushan ($15/mt), Singapore ($12/mt) and Fujairah ($10/mt)
• B24-VLSFO at a $154/mt premium over VLSFO in Singapore
• B24-VLSFO at a $219/mt premium over VLSFO in Fujairah

Zhoushan’s VLSFO price has dropped by $19/mt in the past day, marking the steepest decline among the three major Asian bunker ports. As a result, Zhoushan’s VLSFO premiums over Singapore and Fujairah have been erased, bringing prices to near-parity levels.

The port’s LSMGO price has also fallen sharply by $19/mt. Zhoushan’s LSMGO now carries a $42/mt premium over Singapore but stands at a discount of $63/mt to Fujairah.

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

In Fujairah, prompt bunker availability remains tight, with lead times for all grades holding steady at 5–7 days, unchanged from last week. Khor Fakkan has similar lead time recommendations.

In Omani ports, including Sohar, Salalah, Muscat and Duqm, LSMGO supply remains ample.

Brent

The front-month ICE Brent contract has declined by $1.95/bbl on the day, to trade at $69.92/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent’s price found some support amid rising instability in the Middle East.

US President Donald Trump vowed to continue military strikes on Yemen-based Houthi armed group and warned that Iran would be held responsible for any attacks carried out by the group, which has disrupted shipping in the Red Sea.

Meanwhile, Israeli airstrikes in Gaza have killed at least 200 people, according to Palestinian health authorities, ending a ceasefire agreement in the region that began in January. This has heightened concerns about potential threats to oil supply, Reuters reported.

Oil prices were “pushed higher as the escalating tensions in the Middle East raised concerns renewed risks to supply in the region,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

Downward pressure:

Brent futures declined after Russia agreed to Trump's proposal for a temporary halt in attacks between Moscow and Kyiv on each other's energy infrastructure, Reuters reported. This development could lead to more Russian oil entering the global market.

Market watchers suggest that a potential ceasefire might ease sanctions on Russia, increasing oil supply and lowering prices. This expectation has put pressure on crude prices.

“Crude futures were extending… losses, albeit marginally… mostly in response to an initial breakthrough in the Ukraine war situation,” noted Vandana Hari, founder and analyst at VANDA Insights.

Meanwhile, US crude oil inventories rose by 4.6 million bbls in the week ending 14 March, according to American Petroleum Institute (API) estimates cited by Trading Economics. The increase far exceeded market expectations of a 1.2 million-bbl rise. A buildup in inventories typically signals weaker oil demand, which can put downward pressure on Brent's price.

“Crude futures were also feeling some pressure… from a bearish stocks report from the American Petroleum Institute,” Hari added.

By Tuhin Roy

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