Prices in East of Suez ports have moved in mixed directions, and prompt availability of VLSFO and HSFO remains tight in Singapore.

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

• VLSFO prices up in Fujairah ($2/mt), unchanged in Zhoushan, and down in Singapore ($2/mt)
• LSMGO prices up in Zhoushan ($5/mt) and Singapore ($4/mt), and down in Fujairah ($5/mt)
• HSFO prices up in Singapore ($4/mt) and Zhoushan ($2/mt), and down in Fujairah ($16/mt)

LSMGO and HSFO prices in Zhoushan and Singapore ports have increased some, while prices for both grades have decreased in Fujairah. The UAE port’s HSFO price has come down sharply by $16/mt amid downward pressure from a 150–500 mt lower-priced HSFO stem fixed at $450/mt yesterday.

In Singapore, prompt availability for both VLSFO and HSFO continues to remain tight. Several suppliers suggest unchanged lead times of 9-13 days for VLSFO, while lead times for HSFO have been extended from last week’s 8-11 days to 10-12 days now.

Some suppliers in Singapore expect VLSFO replenishment stocks to arrive by the end of this month, which could boost supply, a source said. LSMGO is more readily available in the port, with short lead times of 2-5 days.

VLSFO and LSMGO availability is good in Malaysia’s Port Klang, with some suppliers able to supply both grades for prompt deliveries. HSFO availability remains tight in the port.

In Hong Kong and South Korean ports, all bunker fuel grades are available for prompt deliveries, mostly due to low demand in both regions. Most suppliers are recommending lead times of about 3–7 days for all grades in southern South Korean ports.

High waves are forecast to hit the South Korean port of Yeosu today and over the weekend, which could impact bunker operations in the port.

Brent

The front-month ICE Brent contract gained $0.11/bbl on the day, to trade at $80.25/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Fresh economic data from the world’s largest oil consumer has supported demand growth expectations and boosted Brent’s price gains today. The US retail sales data released yesterday exceeded analysts’ expectations, according to Reuters. Retail sales in the country rose by 1% in July, indicating higher consumer spending and easing concerns about an economic slowdown that could dent oil demand.

This news has put upward pressure on Brent’s price, which is already reacting to recent developments in the Middle East, according to market analysts. “[Brent] crude oil reversed recent losses as positive economic data and supply side concerns boosted investor sentiment,” ANZ Bank’s senior commodity strategist Daniel Hynes noted.

Iran and its regional proxies in Lebanon and Yemen remain “poised” to retaliate to the recent killings of two Hamas and Hezbollah leaders, Hynes added.

Downward pressure:

Some downward pressure on Brent crude is arising from renewed ceasefire talks in the Israel-Hamas conflict, even as troops from Tel Aviv continued its ground assault in the Gaza Strip.

“Officials from the US and Israel began high-stakes negotiations for a Gaza ceasefire in the Qatari capital of Doha on Thursday,” VANDA Insights’ founder and analyst Vandana Hari said.

The talks have been reportedly boycotted by Hamas, according to Reuters.

Concerns about Chinese oil demand have prevented some of Brent’s price gains. Chinese refinery activity remained sluggish in July due to low demand. The country’s apparent oil demand fell 8% year-on-year in July, Hynes remarked.

Source: ENGINE by Aparupa Mazumder