Most prices in East of Suez ports have risen since Friday, and availability remains tight in Zhoushan amid ongoing weather disruption.

IMAGE: Illuminated Kaohsiung city and harbor at night, Taiwan. Getty Images

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

• VLSFO prices up in Fujairah ($50/mt), Singapore ($28/mt) and Zhoushan ($20/mt)
• LSMGO prices up in Fujairah and Singapore ($82/mt), and down in Zhoushan ($47/mt)
• HSFO prices up in Singapore ($76/mt), Fujairah ($26/mt) and Zhoushan ($25/mt)

Fujairah's LSMGO price has climbed by $82/mt over the weekend, matching Singapore for the steepest increase among the three major Asian bunker ports. The price now stands at a $238/mt premium to Zhoushan and a $208/mt premium to Singapore.

Conversely, Zhoushan's LSMGO price has moved the opposite way, experiencing a significant drop since Friday. LSMGO at the Chinese port is now trading at discounts to both, Fujairah and Singapore.

In Zhoushan, fuel availability remains tight despite weak demand, with suppliers quoting lead times of around 10 days for VLSFO, LSMGO and HSFO.

VLSFO lead times are broadly unchanged from a week earlier. The persistent supply constraints stem largely from disruptions caused by adverse weather. Bunkering operations were suspended for about two weeks following Typhoon Dolphin in early August, leaving suppliers with substantial delivery backlogs. Supply tightened further toward the end of August, when rough seas linked to four consecutive tropical systems prompted another suspension at Zhoushan's inner and outer anchorages, a source said. Bunkering resumed on 31 August at the more sheltered Xiushandong and inner Mazhi anchorages after a six-day weather-related suspension. However, operations at Xiushandong were suspended again on 3 September after Typhoon Saudel made its third landfall in China along the Fujian coast. Bunkering resumed at the anchorage on 7 September.

Suppliers remain uncertain about when Zhoushan's bunkering operations will return to full capacity, with activity continuing to depend heavily on weather conditions, the source added.

Brent

The front-month ICE Brent contract has surged by $3.89/bbl on the day from Friday, to trade at $107.98/bbl at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Brent crude’s price has shot up this week, amid supply disruption concerns and repeated vessel attacks in the Persian Gulf.

Another commercial vessel, carrying 14 Indian seafarers, came under a missile attack off the coast of Oman yesterday, leaving one crewmember missing, India’s Ministry of External Affairs reported.

In another news, Saudi Arabia has temporarily ceased flows via its 1,200 km East-West Pipeline, after Yemen’s Iran-aligned Houthi militants targeted it last week. The news has put further upward pressure on Brent’s price.

“Following last week's developments, it’s not surprising that oil prices are trading higher,” two analysts from ING Bank noted.

Downward pressure:

Brent crude’s price has felt some downward pressure after Baker Hughes reported a rise in US crude oil rig activity.

The total number of rigs drilling for crude oil in the US increased by one over the week to 450 units last week.

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.

By Tuhin Roy and Aparupa Mazumder

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