Europe & Africa Market Update 11 Nov

Prices in European and African ports have mostly gained, while bunkering has been suspended in Las Palmas due to rough weather.

IMAGE: The commercial harbour in Las Palmas. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($60/mt), Gibraltar ($35/mt) and Rotterdam ($15/mt)
• LSMGO prices up in Durban ($139/mt), Gibraltar ($34/mt) and Rotterdam ($21/mt)
• HSFO prices up in Rotterdam ($10/mt), and down in Gibraltar ($1/mt)
• B30-VLSFO price down in Rotterdam ($16/mt) on Tuesday

Gibraltar’s VLSFO price has increased considerably, compared to Rotterdam. A higher-priced offer at $785/mt has provided support to the price.

This has widened Gibraltar’s price premium over Rotterdam’s VLSFO price by $20/mt.

Las Palmas’ VLSFO price has edged up comparatively lesser, by $6/mt. This has narrowed Las Palmas’ price premium over Gibraltar by $29/mt.

Meanwhile, Las Palmas’ HSFO price has increased by $24/mt. This has narrowed the port’s Hi5 spread by $18/mt over the last day.

Fuel availability is tight in Las Palmas for prompt supplies, with buyers advised lead times of around 7-10 days for good coverage, a trader told ENGINE.

Las Palmas is experiencing rough winds of more than 25 knots and waves over 1.5 metres. Due to the adverse weather conditions, bunkering operations have been suspended in the outer anchorage areas, port agent MH Bland said.

Bunkering is possible for vessels berthed alongside, and in the inner anchorage, but with delays, MH Bland added.

Brent:

The front-month ICE Brent contract has increased by $0.96/bbl on the day, to trade at $91.55/bbl at 09.00 GMT.

Upward pressure:

Brent futures have rebounded, following a report of a fresh attack on a tanker near the Strait of Hormuz. The United Kingdom Maritime Trade Operations (UKMTO) agency reported on Tuesday that a vessel was struck by an unknown projectile, approximately 19 nautical miles (NM) northeast of Lima, Oman.

The agency has advised vessels to transit with caution.

Iran’s Revolutionary Guards Navy said, on Tuesday, that two tankers caught fire after striking naval mines while transiting the Strait of Hormuz, Reuters reported.

Additionally, Iran has denied US claims that negotiations on reopening the Strait of Hormuz are continuing. Iran’s Security Council chief Mohsen Rezaei said, “The US’ claim about continuing negotiations or holding a meeting in Qatar is a pure lie,” state-owned news agency IRNA reported.

Downward pressure:

US crude oil inventories increased by 9 million bbls in the week ending 6 November, according to estimates from the American Petroleum Institute (API), as cited by Trading Economics.

A rise in US crude stocks usually indicates lower demand and can put downward pressure on Brent’s price. The market is now awaiting official inventory data from the US Energy Information Administration (EIA), which is due to be released later today.

Senior officials from Russia and Ukraine met in Abu Dhabi on Tuesday for US-brokered peace talks, marking their first such meeting since February, Reuters reported.

By Nachiket Tekawade and Shilpa Sharma

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