Fuel prices in East of Suez ports have moved in mixed directions, and VLSFO and LSMGO availability is good in Malaysia’s Port Klang.

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

• VLSFO prices up in Zhoushan ($8/mt), and down in Singapore ($3/mt) and Fujairah ($1/mt)
• LSMGO prices up in Singapore ($1/mt), and down in Fujairah ($9/mt) and Zhoushan ($5/mt)
• HSFO prices down in Singapore ($9/mt), Zhoushan ($6/mt) and Fujairah ($5/mt)
• B24-VLSFO at a $184/mt premium over VLSFO in Singapore
• B24-VLSFO at a $199/mt premium over VLSFO in Fujairah
  
  

Zhoushan’s VLSFO price has increased by $8/mt in the past day, while prices in Singapore and Fujairah have edged down. As a result, Zhoushan has moved from near parity with Singapore to a premium of $12/mt, and its premium over Fujairah has nearly doubled to $20/mt.

In Singapore, VLSFO lead times remain highly variable despite weak demand. Some suppliers are quoting as little as six days, while others advise booking up to two weeks in advance due to long-term nominations, which are typically contract-based stems that take priority over spot demand. However, this marks a slight improvement from last week when lead times ranged from 5–21 days.

Most suppliers now recommend LSMGO lead times ranging from 2–8 days, compared to the 4–6 days typically required last week. HSFO lead times in Singapore have increased to 9–14 days, up from 7–12 days last week.

Meanwhile, Malaysia’s Port Klang continues to offer VLSFO at a $13/mt discount to Zhoushan. In Port Klang, both VLSFO and LSMGO remain readily available, with prompt delivery possible for smaller quantities. However, HSFO supply remains tight.

Brent

The front-month ICE Brent contract has lost by $1.06/bbl on the day, to trade at $66.78/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Market participants are slowly growing optimistic towards trade talks between the US and China. This has supported Brent futures this week.

Representatives from the two countries have agreed on a framework to ease trade tensions, according to media reports.

The deal is yet to be reviewed and approved by US President Donald Trump and his counterpart Xi Jinping.

The news comes amid growing optimism over another US interest rate cut, with the US Federal Reserve (Fed) set to hold its next policy meeting in July.

“In addition to the rate-cut narrative, global growth optimism is starting to regain momentum,” SPI Asset Management managing partner Stephen Innes said.

Downward pressure:

Brent crude’s price has moved lower due to growing oversupply concerns in the global oil market.

Eight members of the OPEC+ coalition are expected to raise their combined August output by another 411,000 b/d, according to media reports. This news has countered any Brent gains.

“The market is now concerned that the OPEC+ alliance will continue with its accelerated rate of output increases,” ANZ Bank’s senior commodity strategist Daniel Hynes.

The Saudi Arabia-led group will again meet on 6 July 2025 to decide on August production levels, it said earlier.

“It would be the fourth month in a row the group has agreed to such a large increase in output,” Hynes said.

The oil producers’ group had originally agreed to gradually phase out of the 2.2 million b/d production cuts at a rate of 138,000 b/d every month.

By Tuhin Roy and Aparupa Mazumder

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