Prices in East of Suez ports have moved in mixed directions, and prompt availability of VLSFO is tight in several Japanese ports.

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

• VLSFO prices up in Zhoushan ($2/mt) and Fujairah ($1/mt), and down in Singapore ($6/mt)
• LSMGO prices up in Zhoushan ($13/mt), Fujairah ($4/mt) and Singapore ($2/mt)
• HSFO prices up in Fujairah ($2/mt) and Singapore ($1/mt), and down in Zhoushan ($3/mt)
• B24-VLSFO at a $233/mt premium over VLSFO in Singapore
• B24-VLSFO at a $234/mt premium over VLSFO in Fujairah

Singapore’s VLSFO price has slipped by $6/mt over the past day, while prices in Fujairah and Zhoushan have remained broadly stable. As a result, Singapore’s VLSFO discount to Zhoushan has widened by $8/mt to $25/mt, while its spread against Fujairah has shifted from near-parity to a marginal $5/mt discount.

In Singapore, VLSFO delivery lead times have risen slightly to 8–11 days, compared with 7–10 days a week ago. HSFO availability remains stable with unchanged lead times of 7–11 days. LSMGO supply has tightened, with lead times extending to 4–9 days from 4–5 days previously.

In Japan, Tokyo continues to price VLSFO at a significant $50/mt premium over Singapore.

Prompt VLSFO availability remains tight across major ports including Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Mizushima, Nagoya and Yokkaichi. LSMGO supply remains generally adequate nationwide, though prompt deliveries in Mizushima may still face delays.

Availability of B24-VLSFO in Tokyo, Chiba, Kawasaki and Yokohama remains subject to enquiry. HSFO stocks are stable across most ports, but Oita is currently facing shortages of all grades—VLSFO, LSMGO and HSFO.

Brent

The front-month ICE Brent contract has lost by $0.10/bbl lower on the day, to trade at $66.92/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Growing aggression between Russia and Ukraine has continued to lend some support to Brent crude’s price this week.

The Ukrainian military has targeted major Russian oil facilities in recent weeks, including oil refineries in Krasnodar and Syzran, according to a Reuters report.

“Escalating tensions persist as Ukraine continues to target Russian oil refineries, disrupting Russia’s oil product flows,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

The Krasnodar oil refinery produces about 3 million mt/year of light petroleum products, the Reuters report adds.

Downward pressure:

Brent crude has remained under pressure amid concerns of increasing OPEC+ supply.

The group is scheduled to meet on Sunday to discuss production levels, after eight members of the group unwound voluntary cuts of 2.2 million b/d over the past six months. The voluntary production cuts were announced in 2024.

“Market expectations are growing that the [OPEC+] group will continue to push more barrels into the market, in an effort to gain market share lost to US shale producers in recent years,” Hynes said.

The latest US crude inventory report has put further downward pressure on Brent. Commercial US crude oil inventories have gained by 2.4 million bbls to touch 421 million bbls for the week ending 29 August, according to data from the US Energy Information Administration (EIA).

“Sentiment wasn’t helped by a bearish US inventory report,” Hynes said. US crude oil stockpiles are “now at their highest level since early August,” he added.

A rise in US crude stocks can indicate lower demand for oil and put some downward pressure Brent's price.

By Tuhin Roy and Aparupa Mazumder

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