Bunker prices in East of Suez ports have moved in mixed directions, and prompt availability has improved across all grades in Zhoushan.

IMAGE: Aerial view of Zhoushan, Zhejiang, China. Getty Images

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

• VLSFO prices up in Zhoushan ($7/mt), and down in Singapore ($6/mt) and Fujairah ($3/mt)
• LSMGO prices up in Singapore ($6/mt) and Zhoushan ($4/mt), and down in Fujairah ($4/mt)
• HSFO prices up in Zhoushan ($3/mt), unchanged in Singapore, and down in Fujairah ($11/mt)
• B30-VLSFO at a $224/mt premium over VLSFO in Singapore

VLSFO prices across the key Asian bunkering hubs have moved in mixed directions, with Zhoushan's benchmark rising in the past day. The grade continues to trade at premiums of $31/mt and $33/mt over Fujairah and Singapore, respectively.

Prompt availability in Zhoushan has improved slightly amid muted bunker demand, according to a source.

Zhoushan's HSFO price has also risen in the past day. The benchmark is at a premium of $68/mt over Singapore and $82/mt over Fujairah. Zhoushan’s Hi5 spread currently stands at $27/mt, much narrower than the other two ports’ $62/mt and 78/mt, respectively.

HSFO and LSMGO lead times are around four days in Zhoushan. VLSFO lead times are around 5-7 days.

VLSFO and LSMGO availability is good in China’s Dalian and Qingdao. HSFO is tight in Qingdao. VLSFO and HSFO supplies are tight in Shanghai, while LSMGO supply is comparatively stable.

Brent

The front-month ICE Brent contract has gained by $0.26/bbl on the day, to trade at $65.85/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has gained after Washington increased pressure on Russia with major sanctions on Rosneft and Lukoil – two major Russian oil producers, in a move to reduce the country’s revenues that go into funding the ongoing conflict.

The two companies produce more than a combined 5 million b/d of crude oil, or around 50% of total Russian oil production, according to media reports.

“The two companies are the largest producers of oil in Russia, making up nearly half of the country’s total crude exports,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

The announcement comes soon after US President Donald Trump cancelled his plans to meet Russian counterpart Vladimir Putin in Budapest to hold talks for a ceasefire in Ukraine.

The latest US sanctions “mark an important shift” in the US government’s approach towards Russia, according to ING Bank analyst Warren Patterson. It could “potentially having significant ramifications for the oil market,” he said.

Downward pressure:

Brent’s price was under significant downward pressure prior to the announcement of sanctions, as the market was eyeing a surplus through the remainder of 2025 and 2026.

This had “weighed heavily on oil prices, with Brent trading down towards US$60/bbl,” Patterson said.

Besides, supply hikes by OPEC+ producers has weighed on Brent’s price. Earlier this month, eight members of the group agreed to collectively increase their production by another 137,000 b/d in November.

“Lower oil prices create the opportunity to impose sanctions, whilst expectations of abundant supply also provide comfort that the market can manage potential losses in Russian oil supply,” Patterson added.

By Aparupa Mazumder

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