Europe & Africa Market Update 11 Mar

Prices have moved in mixed directions in European and African ports, and fuel availability remains tight in the ARA hub.

IMAGE: Huge container ship being unloaded with cranes at a container terminal in Antwerp, Belgium. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Gibraltar ($14/mt)
• LSMGO prices up in Rotterdam ($25/mt), and down in Gibraltar ($48/mt)
• HSFO prices down in Gibraltar (19/mt)
• B30-VLSFO prices up in Rotterdam ($4/mt)
  

LSMGO prices remain high in the ARA hub. Bunkering LSMGO in Antwerp costs $25/mt more than in Rotterdam.

Antwerp’s VLSFO price has gained around $126/mt in the past day. Consequently, VLSFO bunkers in Antwerp now cost $24/mt more than in Rotterdam.

Meanwhile, HSFO supplies in Antwerp can cost around $57/mt more than in Rotterdam.

Both HSFO and VLSFO supplies are tight in the ARA hub. One supplier said they can deliver VLSFO in Antwerp earliest by around 23 March, a trader said.

Meanwhile, pilots in Antwerp will be on strike between 11-13 March, during which no vessel movements will be possible, a shipping agent said.

Brent

The front-month ICE Brent contract has declined by $1.81/bbl on the day, to trade at $91.00/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has felt some upward pressure after the American Petroleum Institute (API) reported a draw in US crude stocks, partially offsetting a 17-million-bbl surge over the last two weeks.

In contrast, market participants had expected a 1.4-million-bbl build.

A drop in US crude stocks can indicate higher demand for oil and put some upward pressure on Brent's price.

Reports that Iran has laid naval mines in the Strait of Hormuz have supported Brent’s price today.

The US army has reportedly destroyed multiple Iranian vessels and 16 minelayers, according to a video posted by the US Central Command (CENTCOM) on social media platform X.

“The return of oil flows through the Strait of Hormuz remains crucial. The longer flows remain constrained, the more upstream oil production will be shut in,” two analysts from ING Bank noted.

Downward pressure:

On Monday, US President Donald Trump said that the conflict could end before four weeks – as previously expected. Brent’s price has shed following this development.

Brent receded after “President Trump suggested that the war would end soon,” ING Bank’s analysts said.

The Group of Seven (G7) developed countries refrained from committing a joint release of oil from emergency reserves yesterday.

However, the International Energy Agency’s (IEA) executive director Fatih Birol said that representatives from the IEA member governments will meet for a second round of discussions later today.

“There are reports that the group will meet again today and could agree on a coordinated release of 300-400m barrels [300-400 million bbls],” ING Bank’s analysts added.

IEA member countries currently hold over 1.2 billion bbls of public emergency oil stocks, with another 600 million bbls of industry stocks held under government obligation, Birol said in a statement.

“The mere suggestion of this release has helped ease prices,” the two ING analysts added.

By Nachiket Tekawade and Aparupa Mazumder

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