Europe & Africa Market Update 11 June

Bunker prices across major European and African ports have moved in mixed directions, while fuel availability is stable off Malta.

IMAGE: Tankers during a bunker operation off Malta. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Gibraltar ($28/mt), Durban ($21/mt) and Rotterdam ($8/mt)
• LSMGO prices up in Durban ($23/mt), Rotterdam ($2/mt), and unchanged in Gibraltar
• HSFO prices up in Gibraltar ($5/mt), and down in Rotterdam ($13/mt)
• B30-VLSFO prices up in Gibraltar ($13/mt), and down in Rotterdam ($12/mt)

The price of LSMGO at Gibraltar has remained stable over the past session, while the grade has recorded a $17/mt gain off Malta, thus widening the latter's price premium by $18/mt over the Mediterranean port since yesterday.

VLSFO off Malta, which has gained $11/mt over the past session, is also trading at a price premium of $6/mt to Gibraltar, compared to a $33/mt discount yesterday.

However, off Malta's HSFO price premium has narrowed by $13/mt over Gibraltar since yesterday.

Fuel availability is now normal off Malta, with suppliers able to deliver any fuel grade with a lead time of 3-4 days, a trader said.

Rough winds of around 25 knots are forecast off Malta between Thursday and Friday, which could lead to some disruptions in bunkering operations in some areas.

Brent

The front-month ICE Brent contract has gained by $1.15/bbl on the day, to trade at $92.21/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has moved higher in the wake of fading ceasefire hopes between Washington and Tehran.

In the latest round of fire exchange, the US Central Command (CENTCOM) has targeted Iranian military surveillance, communication systems and air defense sites.

“Oil prices have continued to rally… amid additional US strikes in Iran,” two analysts from ING Bank said.

Iran’s navy has responded to the US strikes by declaring a complete closure of the Strait of Hormuz to all vessel traffic.

These strikes have effectively erased the oil market’s optimism established by April’s fragile ceasefire.

The latest development “once again suggests a deal is still some way off and that energy flows from the Persian Gulf will remain heavily constrained,” ING Bank’s analysts said.

Downward pressure:

While there are no significant downward pressures on Brent’s price today, market participants will be focused on any suggestions of progress in US-Iran negotiations.

Earlier this week, Israeli Prime Minister Benjamin Netanyahu said the Israel Defense Forces (IDF) will refrain from attacking Iranian sites “for now”.

By Nachiket Tekawade and Aparupa Mazumder

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