Europe & Africa Market Update 1 Sep

European and African bunker prices have mostly gained, while prompt fuel availability remains tight at ports in the Gibraltar Strait.

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($10/mt) and Gibraltar ($5/mt), and down in Durban ($17/mt)
• LSMGO prices up in Gibraltar ($64/mt), Rotterdam ($33/mt) and Durban ($2/mt)
• HSFO prices up in Gibraltar ($18/mt), Rotterdam ($12/mt) and Durban ($7/mt)
• B30-VLSFO prices down in Rotterdam ($23/mt)

Gibraltar’s LSMGO price has gained almost twice as sharply than Rotterdam’s, possibly supported by a 150-500 mt stem, fixed at a high price of around $1,390/mt.

This has widened Gibraltar’s price premium over Rotterdam’s LSMGO by around $31/mt in a single day, to $135/mt.

This price premium has doubled over the last one month, from $67/mt on 1 August. Gibraltar’s LSMGO price has widened $51/mt since 1 August, while Rotterdam’s LSMGO price has dropped $17/mt.

The price premium briefly fell to as low as $30/mt between 9-10 August, its lowest level in 2026 so far, but has since more than quadrupled to current levels.

The price premium remains sharply higher compared to the levels seen on 28 February, before the conflict in the Middle East drove marine fuel prices sharply higher, but has more than halved since 10 March, when it was observed at $287/mt, its highest level seen so far in the year.

Fuel availability remains tight at ports in the Gibraltar Strait, with buyers recommended lead times of 7-10 days to secure deliveries of any fuel grade, a trader told ENGINE.

Brent

The front-month ICE Brent contract has gained by $1.13/bbl on the day, to trade at $92.37/bbl at 09.00 GMT.

Upward pressure:

US President Donald Trump has once again drawn the market’s attention with his latest hardline comments, putting upward pressure on Brent crude’s price.

The statement came shortly after the US and Iran resumed direct exchange of fire for the first time in recent weeks.  

Trump claimed that Washington is prepared to “smack” Iran, if it continues to target more US assets in the Middle East.

“Oil prices started the week stronger following the first military strikes between the US and Iran in a month,” two analysts from ING Bank noted.

Downward pressure:

While there is limited downward pressure on Brent’s price today, market analysts will have an eye out for the US commercial crude stocks data due later this week.

Commercial US crude oil inventories increased by 95,000 bbls to 429 million bbls in the week ending 21 August, according to data from the US Energy Information Administration (EIA).

A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.

By Nachiket Tekawade and Aparupa Mazumder

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