Prices in East of Suez ports have moved up, and prompt VLSFO supply is tight across several Japanese ports.

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

• VLSFO prices up in Singapore ($7/mt), Fujairah ($6/mt) and Zhoushan ($1/mt)
• LSMGO prices up in Singapore ($14/mt), Zhoushan ($8/mt) and Fujairah ($2/mt)
• HSFO prices up in Zhoushan ($11/mt), Singapore ($7/mt) and Fujairah ($5/mt)
• B24-VLSFO at a $159/mt premium over VLSFO in Singapore
• B24-VLSFO at a $225/mt premium over VLSFO in Fujairah

Singapore’s VLSFO price has rebounded after declining in the previous session, supported by a higher-priced 500–1500 mt VLSFO stem fixed in the past day. The port’s VLSFO holds a premium of $11/mt over Zhoushan and $5/mt over Fujairah.

VLSFO lead times have narrowed in Singapore to 2–10 days from 3–12 days last week. HSFO supply remains stable with lead times of 2–4 days. LSMGO supply is steady with lead times of 6–9 days. However, adverse weather conditions are expected until Friday, which could impact bunker deliveries.

In Japan, Tokyo’s VLSFO price stands at an elevated premium of $58/mt over Singapore.

VLSFO is readily available at Osaka, Kobe, Sakai, Nagoya and Yokkaichi, but prompt supply is tight in Tokyo, Chiba, Yokohama, Kawasaki and Mizushima.

LSMGO availability is stable, though securing prompt deliveries can be challenging in Osaka, Kobe, Sakai, Nagoya, Yokkaichi and Mizushima. HSFO supply remains constrained across multiple Japanese ports, while in Oita, all fuel grades are subject to availability.

Brent

The front-month ICE Brent contract has gained $1.38/bbl higher on the day, to trade at $71.30/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Geopolitical tensions brewing in the Middle East have once again pushed Brent crude’s price above the $70/bbl mark.

Earlier this week, the Donald Trump-led US administration launched a major military operation against the Yemen-based Houthi militants, in response to the ongoing maritime attacks that have disrupted vessel movements in the crucial Red Sea shipping corridor.

The US President has further warned that Iran would be held accountable for any attacks carried out by the rebel group. “The US continues to pile further pressure on Iran, with President Trump pressuring it to rein in support for Yemen’s Houthis rebels,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Brent’s price also found support from declining US gasoline and distillate stockpiles that helped offset fears of weak demand growth. “US gasoline inventories have fallen for three consecutive weeks. They’re now the lowest since early January,” two analysts from ING Bank said.

Downward pressure:

Brent’s price felt some downward pressure after the US Energy Information Administration (EIA) reported a small rise in US crude stocks.

Commercial US crude oil inventories increased by 1.7 million bbls to touch 437 million bbls for the week ending 14 March, according to data from the EIA.

A buildup in inventories typically signals weaker oil demand, which can put downward pressure on Brent’s price.

By Tuhin Roy and Aparupa Mazumder

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