Prices in East of Suez ports have moved up, and VLSFO and LSMGO availability is good in Malaysia’s Port Klang.

IMAGE: An old wooden cargo ship setting out from Port Klang. Getty Images

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

• VLSFO prices up in Singapore ($11/mt), Zhoushan ($9/mt) and Fujairah ($1/mt)
• LSMGO prices up in Zhoushan ($18/mt), Singapore ($17/mt) and Fujairah ($15/mt)
• HSFO prices up in Zhoushan ($16/mt), Fujairah ($8/mt) and Singapore ($6/mt)
• B24-VLSFO at a $222/mt premium over VLSFO in Singapore
• B24-VLSFO at a $240/mt premium over VLSFO in Fujairah

Singapore’s VLSFO price has increased by $11/mt in the past day — the sharpest rise among Asia’s three key bunker hubs. A higher-priced VLSFO stem fixed in the port has supported the benchmark. Despite the price rise, Singapore’s VLSFO remains $16/mt cheaper than Zhoushan, but $10/mt more expensive than Fujairah.

VLSFO deliveries in Singapore now require 8–11 days, slightly up from 7–10 days last week. HSFO supply is steady, with lead times of 7–11 days, nearly unchanged week-on-week. LSMGO supply has tightened, with lead times extending to 4–9 days from 4–5 days previously.

In Malaysia’s Port Klang, prompt deliveries of VLSFO and LSMGO remain readily available, while HSFO supply is still constrained.

Brent

The front-month ICE Brent contract has gained by $1.12/bbl on the day, to trade at $69.15/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent crude’s price has gained by more than $1/bbl after Ukraine escalated its attacks on Russian energy infrastructure, hitting several oil refineries over the weekend.

On Sunday, Ukrainian President Volodymyr Zelensky said Kyiv plans to carry out further strikes deep inside Russia following weeks of intensified attacks on its energy infrastructure, according to a Reuters report.

“Crude oil edge[d] higher… as geopolitical risks came back into focus,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

The recent Ukrainian drone attacks have forced the shutdown of oil facilities accounting at least 17% of Russia’s oil-processing capacity, or about 1.1 million b/d, Reuters estimates.

“Ongoing risks to energy infrastructure in Russia remain high,” Hynes said. “Exports of Russian oil from its ports have dropped to a four-week low of 2.72mb/d [2.72 million b/d], according to tanker tracker data,” he added.

Downward pressure:

The oil market’s attention is increasingly turning to the OPEC+ meeting due on 7 September, according to analysts.

The prospect of a supply glut later this year as the Saudi Arabia-led oil producers group fully unwinds the existing supply cuts, has put some downward pressure on Brent today.

“We believe, just like the broader market, that the group will leave production levels unchanged for October,” two analysts from ING Bank said.

OPEC+ has rolled back 2.2 million b/d of additional voluntary supply cuts over the past six months, ahead of its initial plan.

“The scale of the surplus through next year means it’s unlikely the group will bring additional supply onto the market,” the two analysts added.

By Tuhin Roy and Aparupa Mazumder

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