Most prices in East of Suez ports have declined, and availability of all grades has tightened in Zhoushan.

IMAGE: The coastal urban landscape of the port of Kaohsiung in Taiwan. Getty Images

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

• VLSFO prices down in Zhoushan ($7/mt), Singapore ($3/mt) and Fujairah ($1/mt)
• LSMGO prices up in Fujairah ($2/mt), and down in Zhoushan ($12/mt) and Singapore ($2/mt)
• HSFO prices unchanged in Singapore, and down in Zhoushan ($9/mt) and Fujairah ($1/mt)
• B24-VLSFO at a $215/mt premium over VLSFO in Singapore
• B24-VLSFO at a $235/mt premium over VLSFO in Fujairah

VLSFO prices in the three main Asian bunker hubs have declined by $1–7/mt over the weekend, with Zhoushan seeing the sharpest drop. Despite the price fall, Zhoushan’s VLSFO remains at a premium of $18/mt over both Singapore and Fujairah.

Bunker supply in Zhoushan has tightened as several suppliers face low inventories and delayed replenishment cargoes. Lead times for VLSFO have increased to 7–10 days from 5–7 days last week. HSFO and LSMGO lead times have also increased to 7–10 days from 5–7 days earlier.

In contrast, Taiwan continues to offer stable supply. Lead times of about two days are advised for VLSFO and LSMGO at Taichung, Hualien and Keelung, and around three days at Kaohsiung.

Brent

The front-month ICE Brent contract has moved $0.17/bbl lower on the day from Friday, to trade at $68.03/bbl at 09.00 GMT.at 17.00 SGT (09.00 GMT).

Upward pressure:

Ukraine has continued to target Russian energy infrastructure over the weekend. This news has provided some support to Brent’s price.

The Ukrainian army said on Saturday that it had hit Russian oil refineries in Krasnodar and Syzran, according to a Reuters report.

Kyiv's military reported multiple explosions and a fire at the Krasnodar oil refinery, which produces 3 million mt/year of light petroleum products, the report adds.

“Ukrainian drone attacks on Russian energy infrastructure through August led to a spike in domestic fuel prices,” remarked two analysts from ING Bank. “If these attacks intensify, it could support product cracks,” the analysts said.

Downward pressure:

Brent crude has erased last week’s gains as market focus shifted from geopolitical concerns to the prospect of a supply glut later this year, as OPEC+ fully unwinds the existing 2.2 million b/d cut.

The surge in OPEC+ supply is “expected to push the market into surplus later this year,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

The oil producers’ alliance is due to meet on 7 September to discuss production levels, “although no talks have yet been held about its next move,” Hynes added.

By Tuhin Roy and Aparupa Mazumder

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