Europe & Africa Market Update 10 Sep

Bunker benchmarks across European and African ports have mostly increased, while bunker fuel availability is stable in Istanbul.

IMAGE: Aerial view of a cargo ship in transit in Istanbul, Türkiye. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam, Durban ($15/mt) and Gibraltar ($10/mt)
• LSMGO prices up in Rotterdam, Durban ($36/mt) and Gibraltar ($29/mt)
• HSFO prices up in Gibraltar ($38/mt), Durban ($18/mt) and Rotterdam ($11/mt)
• B30-VLSFO prices up in Gibraltar ($23/mt) and down in Rotterdam ($13/mt)

Regional bunker prices have mostly gained across European ports over the past session, tracking the gain in Brent's price.

Meanwhile, Istanbul's LSMGO price has dropped $24/mt in the past day, pressured by a 150-500 mt stem, fixed at a low price of $1,518/mt.

Comparatively, LSMGO prices off Malta and in Piraeus have increased by $24/mt and $33/mt, respectively.

This brought the Turkey's LSMGO price on par with Malta’s and Piraeus’ levels, compared with $46-56/mt price premiums seen yesterday.

Bunker fuel availability is stable in Turkey’s Istanbul, and all fuel grades can be secured with a short notice of 1-3 days, a trader said.

Brent

The front-month ICE Brent contract has gained by $1.94/bbl on the day, to trade at $102.30/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price is trading above the $100/bbl mark for the first time in two months, as the global oil market continues to price in persistent geopolitical risk, with tensions between the US and Iran showing no viable path to de‑escalation.

“If anything, current signals point to further escalation, keeping upside pressure firmly in place,” two analysts from ING Bank said.

The US Central Command (CENTCOM) said it has destroyed 10 Iranian oil tankers over the past week that were part of Tehran’s “multibillion-dollar” shadow fleet network funding the IRGC.

“Oil prices continued to climb, with Brent breaking above $100/bbl, as prospects for de-escalation between the US and Iran remained elusive, raising concerns over the security of energy flows,” ING Bank’s analysts said.

Downward pressure:

While Brent’s price is under limited downward pressures today, market participants await US Energy Information Administration (EIA) crude inventory data, scheduled for release tomorrow.

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

The crude stocks report has been delayed this week due to the US Labour Day holiday.

By Nachiket Tekawade and Aparupa Mazumder

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