Europe & Africa Market Update 10 Mar
Prices have mostly fallen across European ports, while longer lead times are recommended for bunkering off Malta. 
IMAGE: Tankers during a bunker operation off Malta. Getty Images
Changes on the day to 09.00 GMT today:
- VLSFO prices up in Gibraltar ($25/mt)
- LSMGO prices down in Rotterdam ($254/mt) and Gibraltar ($73/mt)
- HSFO prices down in Gibraltar (26/mt)
- B30-VLSFO prices down in Rotterdam ($128/mt)
Gibraltar’s VLSFO price has seen an increase in the past day. Two higher-priced VLSFO stems, fixed between $840-864/mt, have provided support to the benchmark.
Meanwhile, the VLSFO price off Malta has fallen around $130/mt. Consequently, Malta’s discount to Gibraltar has widened by around $155/mt in a single session.
The LSMGO price off Malta has also fallen $229/mt since yesterday. This loss was much steeper than Gibraltar’s price drop, thus widening Malta’s discount by around $156/mt in a single day.
Suppliers off Malta are requesting longer lead times. Any fuel grade can be delivered in Malta’s offshore bunkering area earliest between 18-21 March, a trader said.
Brent
The front-month ICE Brent contract has dropped by $13.99/bbl on the day, to trade at $92.81/bbl at 09.00 GMT.
Upward pressure:
Concerns over smooth transit through the Strait of Hormuz continues to support oil prices after Iran’s Revolutionary Guards said it would not allow crude oil to be shipped from the Middle East if US and Israeli attacks continue.
The global oil market “will need to see a resumption of oil flows through the Strait of Hormuz to sustain a move lower in oil prices,” two analysts from ING Bank said.
Downward pressure:
Brent futures have fallen after climbing above $100/bbl in the previous session, as the conflict between the US, Israel and Iran has shown signs of de-escalation.
US President Donald Trump yesterday said that the war could end earlier than his previously stipulated timeframe of four weeks, Reuters reported. However, he cautioned that the US could intensify attacks if Iran blocks traffic through the Strait of Hormuz.
Additionally, the Group of Seven (G7) developed countries announced yesterday that they were prepared to take necessary steps to curb rising global oil prices but refrained from committing a joint release of oil from emergency reserves.
Reports that “G7 finance ministers were considering a significant release of oil from strategic reserves, along with comments from President Trump suggesting that the war might end soon, sent prices plunging later in the session,” two analysts from ING Bank noted.
By Nachiket Tekawade and Shilpa Sharma
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