Prices in East of Suez ports have moved in mixed directions, and bunkering remains suspended in Zhoushan’s OPL area due to Typhoon Fung-wong-induced adverse weather conditions.

IMAGE: Aerial view of Zhoushan City, Zhejiang Province. Getty Images

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

• VLSFO prices unchanged in Fujairah, and down in Zhoushan ($3/mt) and Singapore ($2/mt)
• LSMGO prices up in Zhoushan ($8/mt), Fujairah ($4/mt) and Singapore ($3/mt)
• HSFO prices unchanged in Fujairah, and down in Zhoushan ($8/mt) and Singapore ($1/mt)
• B30-VLSFO at a $245/mt premium over VLSFO in Singapore
• B30-VLSFO at a $258/mt premium over VLSFO in Fujairah

VLSFO benchmarks across the three major Asian bunker ports have moved within a narrow range over the weekend, showing no significant changes. Zhoushan’s VLSFO premiums over Fujairah and Singapore currently stand at $22/mt and $16/mt, respectively.

Zhoushan’s LSMGO price has risen by $8/mt over the weekend — the steepest increase among the three ports. Despite this rise, Zhoushan’s LSMGO remains at a discount of $17/mt to Fujairah and $11/mt to Singapore.

Bunker demand in Zhoushan remains subdued, with most suppliers recommending lead times of 4–6 days for VLSFO, slightly down from 5–8 days last week. HSFO lead times have also narrowed to 4–6 days from 5–8 days previously, while LSMGO lead times are steady at 4–6 days.

However, bunker deliveries at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages have been suspended since the weekend due to adverse weather from Typhoon Fung-wong, a source said. Meanwhile, operations at the more sheltered Xiushandong anchorage and the inner anchorage at Mazhi are continuing smoothly.

Most suppliers remain uncertain about when full bunkering operations in Zhoushan will resume as the typhoon moves toward Taiwan.

Bunkering operations at Taiwan’s ports — including Kaohsiung, Keelung, Taichung and Hualien — may be suspended between 11–12 November due to the approaching storm, a trader added.

Currently, VLSFO and LSMGO are typically available within three days at Keelung, Taichung, Hualien and Kaohsiung — nearly unchanged from last week.

Brent

The front-month ICE Brent contract has dropped by $0.12/bbl on the day, to trade at $63.95/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent futures have gained some support following political developments in the US – the world’s largest oil consumer.

The US Senate has passed a funding agreement that could reopen the federal government, according to media reports. The resolution is aimed at ending the 40-day shutdown that has sidelined federal workers, Reuters reported.

Negotiators reached a deal over the weekend, paving the way for a compromise to fund the government.

“[Brent] crude futures opened higher… on news that a record-breaking US government shutdown was nearing an end,” remarked VANDA Insights’ founder Vandana Hari.

Downward pressure:

Brent crude has come under downward pressure after official drilling figures showed no decline in US oil rigs. The number of oil rigs remained unchanged over the week at 414, according to Baker Hughes.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.

Moreover, supply hikes by OPEC+ producers has also 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 December.

“Broader market sentiment remained sombre amid expectations of an oil glut,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

In an oversupplied market, any signal of increased future supply can put downward pressure on Brent’s price.

By Tuhin Roy and Aparupa Mazumder

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