Bunker benchmarks in East of Suez ports have declined, and lead times for VLSFO 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 down in Singapore ($10/mt), Zhoushan ($9/mt) and Fujairah ($6/mt)
• LSMGO prices down in Fujairah ($18/mt), Zhoushan ($14/mt) and Singapore ($7/mt)
• HSFO prices down in Singapore and Zhoushan ($6/mt) and Fujairah ($5/mt)
• B24-VLSFO at a $176/mt premium over VLSFO in Singapore
• B24-VLSFO at a $192/mt premium over VLSFO in Fujairah

VLSFO prices in the three main Asian bunker ports have declined by $6–10/mt over the past day, with Singapore recording the sharpest decline. The drop in Singapore’s VLSFO price has outpaced the decline in its HSFO benchmark, narrowing the port’s Hi5 spread by $4/mt to $98/mt today.

Lead times for VLSFO delivery in Singapore remain inconsistent. Some suppliers are offering six days, while others recommend booking up to two weeks in advance.

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

LSMGO benchmark prices have also declined across the three main bunker hubs. Fujairah has seen the steepest fall of $18/mt in the past day. The price drop has narrowed its LSMGO premium over Singapore from $57/mt to $46/mt now. Recommended lead times for LSMGO deliveries in Fujairah are 5-7 days, according to a trader.

Brent
The front-month ICE Brent contract has declined by $1.28/bbl on the day, to trade at $68.71/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Rising geopolitical tensions in the Middle East and Houthi attacks on commercial vessels in the Red Sea have raised concerns of supply disruptions in the oil market.

US President Donald Trump said he has a “major statement to make on Russia on Monday” in a telephonic interview with media network NBC, without elaborating on his planned course of action.

“This could leave the market nervous over the potential for further sanctions on Russia,” ING’s head of commodity strategy, Warren Patterson said. Additional US sanctions on Russian crude could tighten the global oil market further and add upward pressure on prices.

Downward pressure:

OPEC members could be mulling a pause in further supply hikes from October, Daniel Hynes, senior commodity strategist at ANZ said.

“However, the market took the decision to subsequently pause any further increases as a sign that the market can’t handle any more oil amid weakening demand,” he explained.

The US Energy Information Administration (EIA) reported a 7.1 million barrels surge in US crude stockpiles for the week ending 4 July, adding further downward pressure on Brent’s price.

By Shilpa Sharma and Konica Bhatt

Please get in touch with comments or additional info to news@engine.online