Most prices in East of Suez ports have moved up, and VLSFO and HSFO lead times vary widely in Singapore.

IMAGE: Cargo terminal at the Port of Singapore. Getty Images

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

• VLSFO prices up in Singapore ($7/mt) and Fujairah ($5/mt), and down in Zhoushan ($9/mt)
• LSMGO prices up in Singapore ($16/mt), Fujairah ($15/mt) and Zhoushan ($6/mt)
• HSFO prices up in Fujairah ($13/mt), Singapore and Zhoushan ($2/mt)
• B24-VLSFO at a $174/mt premium over VLSFO in Singapore
• B24-VLSFO at a $198/mt premium over VLSFO in Fujairah

VLSFO prices have increased in the past day by $7/mt in Singapore and $5/mt in Fujairah, while prices in Zhoushan have declined. In Singapore, a higher-priced 500-1500 mt VLSFO stem has supported the benchmark. Singapore’s VLSFO now stands at a $14/mt premium over Fujairah but at a $13/mt discount to Zhoushan.

VLSFO lead times in Singapore remain highly variable. Some suppliers are quoting as few as six days, while others recommend booking up to two weeks in advance due to long-term nominations—typically contract-based stems that take priority over spot demand. Tight loading schedules at some terminals have further contributed to the delays.

Lead times for LSMGO in Singapore have increased, with most suppliers now advising 6–9 days, up from 2–8 days last week. HSFO lead times also vary widely, ranging from 3–12 days, compared to 9–14 days last week.

In Malaysia’s Port Klang, VLSFO and LSMGO remain readily available, with prompt delivery possible for smaller parcels. However, HSFO supply continues to be tight.

Brent

The front-month ICE Brent contract has moved $0.66/bbl higher on the day, to trade at $69.27/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

A recent Houthi attack on a cargo ship in the Red Sea has added upward pressure on Brent futures.

Yemen-based Houthi militants carried out their first assault on a commercial vessel in nearly six months, according to the United States Naval Institute (USNI). The Magic Seas, a Liberian-flagged, Greek-owned bulk carrier en route from Zhuhai, China, to the Suez Canal, was targeted on 6 July off the coast of Hodeidah, Yemen. 

“Increased attacks on vessels passing through the Red Sea by the Houthis in Yemen provided further support to the market yesterday,” analysts at ING Bank noted.

Oil prices are also being supported by a tightening middle distillates market.

“The [global] middle distillate market continues to show increasing signs of tightness,” ING Bank analysts commented.

“Distillate inventories are critically low, causing a diesel shortage… Globally, distillate supplies remain tight, with Europe and Asia affected by refinery constraints, reduced Russian exports, and rising demand,” Phil Flynn, senior market analyst at Price Futures Group, added.

Downward pressure:

US President Donald Trump informed trade partners on Monday that significantly higher US tariffs would take effect from 1 August, though he later clarified the deadline was “not 100% firm,” according to Reuters.

The announcement has triggered uncertainty across financial markets and raised concerns about potential negative impacts on the global economy and oil demand, putting some downward pressure on Brent futures.

While oil prices have largely shrugged off a larger-than-expected OPEC supply increase scheduled for August, “the spectre of another 548kb/d [548,000 b/d] hike in September would raise the risk of inventories beginning to build as seasonal demand wanes,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

By Tuhin Roy

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