Bunker fuel prices in East of Suez ports moved in mixed directions as tight vessel availability persisted in Singapore and geopolitical tensions restricted supplies in Fujairah, engine.online reported. Singapore’s very low sulfur fuel oil price climbed $18 per metric ton, while benchmark ICE Brent crude futures lost $1.15 per barrel to trade at $99.48.
Singapore marine gasoil prices rise as market remains tight
Singapore’s low sulfur marine gasoil price gained $37 per metric ton, marking the largest increase among the three major Asian bunker ports. Despite the sharp gains, Singapore’s LSMGO price stands at discounts of $278 per metric ton to Fujairah and $98 per metric ton to Zhoushan, respectively. Meanwhile, Singapore’s VLSFO price climbed $4 per metric ton in Zhoushan and $2 per metric ton in Fujairah, widening the port’s Hi5 spread from $120 to $131 per metric ton.
The Singapore bunker market remains tight, with VLSFO lead times of 10 to 15 days advised to buyers. High sulfur fuel oil availability tightened further, carrying current lead times of 10 to 15 days, while LSMGO is available more promptly with lead times of about five days compared with five to seven days previously. Singapore’s B30-VLSFO price also rose by $8 per metric ton.
US-Iran tensions restrict bunker supply in Fujairah
In the HSFO market, Fujairah undercuts Singapore and Zhoushan, offering the grade $55 to $169 per metric ton lower. A regional source indicates that bunker availability in Fujairah is still heavily limited as vessel traffic in the Strait of Hormuz is disrupted by ongoing tensions between the US and Iran. Crude oil prices held fairly steady amid these mounting security concerns in the Middle East, with ANZ Bank senior commodity strategist Daniel Hynes noting that crude gained as regional tensions rose.
Weighing against those security concerns, Brent crude’s price came under downward pressure following reports that Saudi Arabia resumed crude oil loadings at its Red Sea terminal of Yanbu. Last month, a drone strike on the critical East-West Pipeline caused tanker loadings at Yanbu to stop suddenly. ING Bank analysts noted that recovering Middle East export flows helped ease immediate supply concerns.
Questions About Bunker Fuel Markets and Crude Movements
What caused Singapore’s LSMGO price to surge while other ports moved in mixed directions?
Even with this increase, Singapore’s LSMGO remains heavily discounted compared to Fujairah and Zhoushan.
Why are bunker supplies severely restricted in Fujairah?
Bunker supply in Fujairah faces severe restrictions because ongoing US-Iran tensions continue to disrupt vessel traffic through the Strait of Hormuz, according to regional sources.
How much did ICE Brent crude lose during the trading session?
The front-month ICE Brent contract lost $1.15 per barrel on the day, trading at $99.48 per barrel by 17.00 SGT.