Bunker fuel prices in East of Suez ports have moved in mixed directions, and prompt availability is tight in Fujairah.

IMAGE: Fujairah Oil Tanker Terminals, which store and handle liquid bulk cargo in the port. Port of Fujairah

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

• VLSFO prices up in Zhoushan ($11/mt), Singapore ($10/mt) and Fujairah ($9/mt)
• LSMGO prices up in Singapore ($19/mt), Fujairah ($12/mt) and Zhoushan ($6/mt)
• HSFO prices up in Singapore ($9/mt), and down in Fujairah ($8/mt) and Zhoushan ($3/mt)
• B24-VLSFO at a $204/mt premium over VLSFO in Singapore

VLSFO and LSMGO benchmarks have gained in three major Asian bunker ports, following Brent’s upward move. A higher-priced 500-1,500 mt VLSFO stem fixed at $502/mt in Zhoushan has contributed to push its benchmark higher.

Singapore's LSMGO benchmark has drawn support from a 0-50 mt LSMGO stem fixed at $612/mt for prompt delivery.

Fujairah's HSFO price has defied Brent's drag as a lower-priced 500-1,500 mt stem was fixed at $389/mt for prompt delivery.

In Fujairah, prompt bunker availability is tight, with lead times for all grades at least seven days, consistent with the previous week. Suppliers in Khor Fakkan also suggest similar lead times.

“Most of suppliers are not entertaining bigger [VLSFO] stems due to instability of the market and due to shortage of cargo,” a source says.

Further east, VLSFO and LSMGO grades are widely available in Malaysia’s Port Klang, with prompt deliveries possible for smaller stems. In contrast, HSFO supply continues to be tight. Bad weather conditions may disrupt bunker operations in Port Klang later this week.

Brent

The front-month ICE Brent contract has increased by $1.04/bbl on the day, to trade at $62.76/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has continued to move higher on the back of fresh hopes of easing trade tensions between the two top global oil consumers - China and the US. Both countries are set to start trade talks over the weekend, according to media reports.

The talks are scheduled on 10-11 May. “[The] talks would be a sign of potential de-escalation in trade tensions,” two analysts from ING Bank noted.

Comments by President Donald Trump and US treasury secretary Scott Bessent have hinted at the potential talks, market analysts said.

“Yet while negotiations would help improve sentiment in the oil market, we’ll need to see significant progress on lowering tariffs to improve the demand outlook,” the ING Bank analysts argue.

On the demand side, US crude stocks data published by the American Petroleum Institute (API) also provided some upward thrust to Brent. US crude oil inventories declined by 4.5 million bbls in the week ending 2 May, according to the API.

The numbers were “fairly constructive,” the two analysts noted. A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.

Downward pressure:

Oil market analysts don’t expect any major new changes in policy from the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting later today.

Fed officials are set to meet to review this year’s interest rate outlook, though market participants widely anticipate that a rate cut is unlikely at this stage.

Higher interest rates could strengthen the US dollar, making dollar-denominated commodities like oil less attractive for holders of other currencies.

“Expectations are low - Powell is expected to deliver a polished version of ‘we’re on hold, watching the data’,” SPI Asset Management managing partner Stephen Innes said.

By Aparupa Mazumder

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