Prices in East of Suez ports have moved down across all bunker fuel grades, and prompt LSMGO availability is good in Singapore.

IMAGE: Aerial view of Singapore container terminal. Getty Images

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

• VLSFO prices down in Fujairah (11/mt), Singapore ($7/mt) and Zhoushan ($4/mt)
• LSMGO prices down in Fujairah ($17/mt), Singapore ($16/mt) and Zhoushan ($15/mt)
• HSFO prices down in Singapore ($12/mt), Zhoushan and Fujairah ($9/mt)
• B30-VLSFO at a $260/mt premium over VLSFO in Singapore
• B30-VLSFO at a $266/mt premium over VLSFO in Fujairah

Singapore’s LSMGO price has declined by $16/mt in the past day. A lower-priced 50–150 mt LSMGO stem fixed in the port has contributed to the drop, bringing Singapore's LSMGO price to a discount of $123/mt to Fujairah and $40/mt to Zhoushan.

Meanwhile, another lower-priced 500-1,500 mt HSFO stem fixed at $358/mt for prompt delivery in Singapore has pulled the benchmark lower by $12/mt, marking the steepest decrease among the three major Asian bunker ports.

Most suppliers in Singapore are now suggesting lead times of about 2–7 days for VLSFO, compared to 4–6 days last week.

LSMGO availability remains good in Singapore, with prompt delivery dates still on offer. In contrast, HSFO supply is tight and requires 8–11 days of advance notice, largely unchanged from last week’s 9–10 days.

At Port Klang, both VLSFO and LSMGO grades are readily available, while HSFO supply remains constrained and harder to secure.

Brent

The front-month ICE Brent contract has declined by $1.89/bbl on the day, to trade at $60.20/bbl, at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent’s price has felt some upward thrust after the American Petroleum Institute (API) reported a drop in US crude stocks.

US crude oil inventories decreased by 2.8 million bbls in the week ending 2 January, according to API estimates cited by Trading Economics.

A slump in US crude stocks usually signals good demand and can give some support to Brent’s price.

Downward pressure:

Brent crude’s price has plunged after the market quickly assessed the fallout from Venezuela’s political turmoil and the uncertainty surrounding control of its oil assets.

Yesterday, US President Donald Trump said Venezuela’s interim administration would be “turning over” 30-50 million bbls of sanctioned oil to be sold at market prices.

The development comes after last week’s detention of President Nicolas Maduro and his wife from the country’s capital city Caracas.

The end of Maduro presidency in Venezuela could add fresh barrels to an already oversupplied market, according to analysts.

By Aparupa Mazumder

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