Prices in East of Suez ports have surged, and VLSFO availability remains good in Zhoushan.

IMAGE: Container ship with working crane bridge in shipyard in Singapore. Getty Images

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

• VLSFO prices up in Zhoushan ($23/mt), Singapore ($7/mt) and Fujairah ($6/mt)
• LSMGO prices up in Singapore ($24/mt), Zhoushan ($17/mt) and Fujairah ($13/mt)
• HSFO prices up in Zhoushan ($10/mt), Singapore ($7/mt) and Fujairah ($5/mt)
• B24-VLSFO at a $175/mt premium over VLSFO in Singapore
• B24-VLSFO at a $187/mt premium over VLSFO in Fujairah

Zhoushan’s VLSFO price has jumped by $23/mt in the past day, marking the sharpest increase among the three major Asian bunker ports. This surge has pushed Zhoushan’s VLSFO price from near parity with Singapore to a $14/mt premium, while its premium over Fujairah has more than tripled to $24/mt.

VLSFO supply in Zhoushan remains stable, with recommended lead times of 5–7 days, nearly unchanged from last week. However, bunker operations at both inner and outer anchorages in Zhoushan have been suspended since Thursday due to rough weather, and most suppliers expect full operations to resume after 30 July, according to a source.

Meanwhile, LSMGO prices have increased across the three East of Suez ports, rising by $13–24/mt over the past day, with Singapore recording the steepest increase. As a result, Singapore’s LSMGO discount to Zhoushan has been erased, though it still maintains a $43/mt discount to Fujairah.

In Singapore, LSMGO delivery times have lengthened, with most suppliers now quoting 5–7 days, up from 2–6 days last week.

Brent

The front-month ICE Brent contract has gained by $1.39/bbl on the day, to trade at $70.48/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

The Donald Trump-led US government and the European Union (EU) reached a trade deal yesterday. This news has supported Brent futures as market participants weighed the broader implications of the agreement.

The deal imposes a 15% tariff on most EU goods, Reuters reports. It has helped avert a broader trade conflict between the two trade partners, which could have dampened the outlook for global oil demand, according to market analysts.

“A trade deal between the US and EU proved positive for sentiment this morning in the oil market,” said two analysts from ING Bank.

Oil prices have gained further support following recent comments by US President Donald Trump, suggesting a shortened deadline for Russia to resolve the Ukraine conflict.

Trump had previously threatened to impose 100% tariffs on countries trading with Russia. If imposed, the secondary tariffs could change the oil supply outlook for this year, according to market analysts.

“Trump’s comments reignited fears that Russia’s oil flows would be impacted,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

Downward pressure:

Brent’s price gains were partially capped amid expectations that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will further boost supply in the upcoming months.

Market participants are awaiting the outcome of the OPEC+ meeting scheduled for 3 August, where the Saudi Arabia-led group is expected to discuss September production levels.

“Attention will likely turn to OPEC+ output policy”, ING Bank’s analysts added.

By Tuhin Roy and Aparupa Mazumder

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