Prices in East of Suez ports have decreased tracking Brent’s downturn, and VLSFO supply is tight in Saudia Arabia’s Jeddah.

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

• VLSFO prices down in Fujairah ($11/mt), Zhoushan ($7/mt) and Singapore ($5/mt)
• LSMGO prices down in Fujairah ($6/mt), Singapore ($5/mt) and Zhoushan ($4/mt)
• HSFO prices down in Singapore ($13/mt), Fujairah and Zhoushan ($7/mt)
• B24-VLSFO at a $208/mt premium over VLSFO in Singapore
• B24-VLSFO at a $218/mt premium over VLSFO in Fujairah

Fujairah’s VLSFO price has dropped by $11/mt in the past day, marking the steepest decline among the three major Asian bunker ports. The port now offers a $21/mt discount to Zhoushan and $10/mt discount to Singapore for VLSFO.

Prompt bunker availability in Fujairah remains tight, with lead times across all fuel grades holding steady at 5–7 days.

In Saudi Arabia, Jeddah's VLSFO is priced $56/mt higher than Fujairah, maintaining a significant premium. VLSFO supply is limited in Jeddah, while LSMGO is more readily available.

Adverse weather could disrupt bunker operations in Jeddah on 29 May and in Yanbu between 28–30 May.

Brent

The front-month ICE Brent contract has moved $0.63/bbl lower on the day, to trade at $64.20/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent’s price has gained some momentum amid increased prospect of fresh sanctions against Russian crude oil and other petroleum products.

The escalation follows comments made yesterday by US President Donald Trump. In a social media post, Trump said that his Russian counterpart, Vladimir Putin was “playing with fire,” after Moscow intensified airstrikes on Ukrainian cities in the recent days.  

Moscow has intensified its attacks despite Washington’s efforts to broker a ceasefire. “This increases the risk of further sanctions against Russia, putting Russian energy flows at risk,” two analysts from ING Bank remarked.

Earlier this month, the European Union (EU) adopted a 17th package of sanctions against Moscow, which targeted its shadow fleet of nearly 200 oil tankers.

This was followed by a statement from finance ministers of the G7 group of developed nations, threatening to “maximize pressure such as further ramping up sanctions,” if no progress is made towards a peace deal with Ukraine.

Downward pressure:

The primary factor weighing down Brent crude’s price today is a stronger US dollar.

A stronger US dollar makes commodities like oil costlier for non-dollar holders, ultimately denting demand in the market. 

“Crude oil prices came under pressure yesterday, with USD strength providing some headwinds for the market,” ING Bank analysts said.

Besides, expectations of higher OPEC+ output have dampened market sentiment, dragging Brent crude lower. The Saudi Arabia-led group will meet on Saturday to review supply quotas for its members and decide July production levels.

“[Market] Participants are taking a wait-and-see approach to Saturday’s OPEC+ meeting, when members will decide on July output levels,” ING analysts added.

The coalition is expected to increase output by another 411,000 b/d in July, for the third consecutive time.

The meeting, initially set for Sunday, has reportedly been rescheduled to an earlier date.

By Tuhin Roy and Aparupa Mazumder

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