Prices in East of Suez ports have tracked Brent’s downturn, and availability of all grades has improved in Singapore.

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

• VLSFO prices down in Zhoushan ($19/mt), Singapore ($13/mt) and Fujairah ($9/mt)
• LSMGO prices down in Zhoushan ($24/mt), Singapore ($21/mt) and Fujairah ($11/mt)
• HSFO prices down in Zhoushan, Singapore ($17/mt) and Fujairah ($10/mt)
• B24-VLSFO at a $214/mt premium over VLSFO in Singapore
• B24-VLSFO at a $215/mt premium over VLSFO in Fujairah

VLSFO prices in the three major Asian bunker ports have dropped by $9–19/mt over the past day, with Zhoushan seeing the sharpest fall. In Singapore, VLSFO is now priced almost on par with both Zhoushan and Fujairah.

Bunker availability has improved in Singapore. VLSFO lead times have shortened from 6–18 days last week, to 7–10 days now, while HSFO lead times have narrowed from 7–11 days to 6–9 days. LSMGO remains readily available, with recommended lead times of 4–7 days, down from 6–8 days last week.

At Malaysia’s Port Klang, the VLSFO price has shifted from a $19/mt discount to Singapore's benchmark at the start of the month to a slight $7/mt premium now.

Both VLSFO and LSMGO grades are easily available in Port Klang, with prompt delivery possible for smaller quantities. However, HSFO supply continues to be limited.

Brent

The front-month ICE Brent contract has moved $2.15/bbl lower on the day, to trade at $64.60/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Renewed pressure on Iran-backed armed groups has supported Brent’s price.

President Donald Trump-led US administration has sanctioned three vessels and three shipping companies for allegedly supporting Yemen-based Houthi militants.

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned the vessels for delivering liquefied petroleum gas (LPG) and gas oil to the Houthi-controlled Ras Isa port.

In Iran’s port city of Bandar Abbas, a huge blast caused an explosion of chemical materials that killed at least 70 people and injured more than 1,200, Reuters cited the country’s state-owned media report on Monday. The port is Iran’s biggest container hub, according to the report.

Downward pressure:

Brent futures have plunged due to multiple factors, all ultimately pointing to one key concern: weakening demand.

Any quick resolution to the trade war between the US and China now seems a little far off, according to market analysts. This outlook has renewed demand growth concerns for commodities like oil.

The potential increase in supply from the OPEC+ alliance is adding further downward pressure on crude oil. “Downside risks for oil prices continue to persist as OPEC+ plans to revive production in its upcoming meeting scheduled for next week,” two analysts from ING Bank noted.

By Tuhin Roy and Aparupa Mazumder

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