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East of Suez Market Update 7 Jul 2025

Fujairah
Hualien
Kaohsiung
Keelung
Singapore
Taichung
Zhoushan
HSFO
LSMGO
VLSFO

Most prices in East of Suez ports have moved up, and operations across several Chinese ports are suspended due to Typhoon Danas.

IMAGE: Aerial view of Zhoushan City, Zhejiang Province. Getty Images


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

  • VLSFO prices up in Zhoushan ($20/mt), Singapore ($4/mt) and Fujairah ($1/mt)
  • LSMGO prices up in Zhoushan ($12/mt) and Fujairah ($2/mt), and unchanged in Singapore
  • HSFO prices up in Zhoushan ($9/mt) and Fujairah ($1/mt), and down in Singapore ($1/mt)
  • B24-VLSFO at a $182/mt premium over VLSFO in Singapore

Zhoushan’s VLSFO price has increased by $20/mt over the weekend—the sharpest rise among the three major Asian bunker hubs. This surge was supported by a higher-priced 150–500 mt VLSFO stem fixed on the same day. As a result, Zhoushan’s VLSFO premium over Fujairah widened by $19/mt to $41/mt, and over Singapore by $16/mt to $29/mt.

VLSFO availability in Zhoushan remains stable despite subdued demand, with lead times slightly shorter at 4–6 days, compared to 5–7 days last week. Most suppliers are currently well-stocked, but delayed replenishment cargoes have prompted some suppliers to raise their prices in anticipation of tighter supply, a source noted. This has further contributed to the upward price trend.

For other grades, HSFO lead times have extended to 5–7 days, up from 4–6 days last week. LSMGO lead times have also lengthened significantly, now at 4–6 days compared to 2–4 days previously.

Meanwhile, Typhoon Danas made landfall in Taiwan’s Chiayi County on Sunday. The storm has weakened from a severe typhoon to a regular typhoon and is expected to move north-northeast before shifting west-southwest on Tuesday, heading toward coastal areas between Taizhou in Zhejiang and Fuzhou in Fujian, according to China’s National Meteorological Center (NMC).

As a result, several ports across South China and the Yangtze River Delta have been suspended since yesterday, a source said.

In Taiwan, lead times at Kaohsiung and Taichung are currently around 3–4 days for both VLSFO and LSMGO, while shorter lead times of about 2 days apply at other key ports like Hualien and Keelung.

However, Kaohsiung and Taichung ports have been suspended today due to Typhoon Danas but are expected to resume operations on Tuesday, according to another source.

Brent

The front-month ICE Brent contract has gained by $0.33/bbl on the day from Friday, to trade at $68.61/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

The total number of rigs drilling for crude oil and natural gas in the US fell by eight last week, bringing the count to 539 units, according to Baker Hughes.

Compared to the same period last year, the US rig count is down by 46 rigs, or approximately 8%.

This decline has raised some supply concerns and added upward pressure on Brent futures.

“The latest rig data from Baker Hughes shows that drilling activity in the US continues to slow… The dramatic drop in drilling activity leaves downside to US oil output through 2026,” noted two analysts from ING Bank.

Downward pressure:

Eight members of OPEC and its allies (OPEC+) have agreed to raise their collective crude oil supply by 548,000 b/d in August—an increase that exceeds prior expectations and has added downward pressure on Brent futures.

Oil prices are facing downward pressure “after OPEC+ agreed on a larger-than-expected supply hike,” analysts from ING Bank said in a note.

Oil prices are under pressure “in response to Saturday’s decision by the OPEC/non-OPEC Group of 8 to hike its collective production target for August by 548,000 b/d instead of 411,000 b/d as expected,” Vandana Hari, founder and analyst at Vanda Insights, added.

Additionally, US officials have signalled a delay in implementing the tariffs but have not provided clarity on the revised rates, according to a Reuters report. The US is finalising trade deals with some countries and will notify others of higher tariff rates by 9 July, with the new rates set to take effect on 1 August, the report said.

This has raised concerns that higher tariffs could dampen economic activity and reduce oil demand.

“A more bearish supply outlook, combined with demand uncertainty, doesn’t bode well for prices,” the ING Bank analysts concluded.

By Tuhin Roy

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