Prices in East of Suez ports have remained broadly rangebound, and availability of all grades is good in Hong Kong.

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 ($1/mt)
• LSMGO prices up in Singapore and Zhoushan ($2/mt), and down in Fujairah ($4/mt)
• HSFO prices up in Singapore ($3/mt) and Zhoushan ($2/mt), and down in Fujairah ($4/mt)
• B24-VLSFO at a $256/mt premium over VLSFO in Singapore
• B24-VLSFO at a $267/mt premium over VLSFO in Fujairah

VLSFO prices in the three major Asian bunker hubs have remained broadly stable over the past day. Zhoushan's VLSFO price holds a $23/mt premium over both Singapore and Fujairah.

Bunker supply in Zhoushan has improved amid weak demand, with lead times of 4–7 days for VLSFO, down from 7–10 days last week. HSFO and LSMGO deliveries are also readily available, with recommended lead times of 3–5 days, compared with 7–10 days previously.

Meanwhile, Hong Kong’s VLSFO price is at a $10/mt discount to Zhoushan. Lead times in Hong Kong remain stable at around seven days for all fuel types.

Brent

The front-month ICE Brent contract has gained by $0.36/bbl on the day, to trade at $67.05/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Brent crude’s price has moved higher after Israel launched an airstrike on Qatar’s capital city of Doha. The Israel Defense Forces (IDF) has claimed that the airstrike targeted senior Hamas leaders based in Qatar.

“This is the first strike in the region since the beginning of the nearly two-year conflict,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

The strike did not hit any oil production or storage facilities, however, it has heightened concerns of a broader geopolitical instability in the Gulf region – a vital conduit for global energy flows, according to market analysts.

Oil got a further boost after Poland intercepted Russian drones targeting western Ukraine earlier today, Reuters reported.

This is the first instance of a NATO member engaging directly in the Russia-Ukraine conflict, which is now in its third year.

Downward pressure:

Brent’s price has felt some downward pressure due to mounting concerns of a supply glut in the fourth quarter of this year.

These concerns come as OPEC+ oil producers group continue to drive oil production higher. Last week, the coalition agreed to collectively increase supply by 137,000 b/d in October.

Notably, eight OPEC+ members introduced two voluntary output cuts in 2023 – 1.65 million b/d in April and 2.2 million b/d in November.

The group plans to fully unwind the 2.2 million b/d reduction this month, while last week’s decision begins phasing out the April cut, OPEC said.

“This [OPEC’s latest decision to increase production by 137,000 b/d] marks the reversal of cuts that were set to remain in place until the end of 2026, following the rapid return of the previous tranche of idled barrels over recent months,” Hynes said.

By Tuhin Roy and Aparupa Mazumder

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