Europe & Africa Market Update 11 Sep

European and African bunker prices have mostly gained in the past day, while congestion persists in Gibraltar.

IMAGE: Stormy clouds over the Bay of Gibraltar. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam, Gibraltar and Durban ($1/mt)
• LSMGO prices up in Rotterdam ($54/mt), Durban ($1/mt), and down in Gibraltar ($28/mt)
• HSFO prices up in Gibraltar ($4/mt), Rotterdam ($2/mt), and down in Durban ($3/mt)
• B30-VLSFO prices up in Gibraltar ($27/mt) and Rotterdam ($21/mt)

VLSFO and HSFO prices have remained mostly steady in Rotterdam and Gibraltar since yesterday.

Rotterdam’s LSMGO price has risen sharply, partly supported by a higher-priced 150-500 mt LSMGO stem fixed at $1,457/mt.

By comparison, Gibraltar’s LSMGO price has declined by $28/mt in the past day, with a lower-priced 150-500 mt stem fixed at $1,480/mt putting downward pressure on the benchmark.

The diverging movements in the LSMGO prices at the two ports have nearly halved Gibraltar’s premium over Rotterdam, which has narrowed by $82/mt in a single day.

Fuel availability remains tight in the Strait of Gibraltar for prompt supplies, with buyers recommending lead times of 10-12 days for all fuel grades, a trader told ENGINE.

Gibraltar has seen long bunkering queues throughout the week. Around 24 vessels were awaiting bunkers at the port as of Friday morning, mainly due to a lack of barges and space, port agent MH Bland said.

Some suppliers are running more than 24 hours behind schedule, the port agent said.

Rough easterly winds of more than 25 knots are forecast in the port from 12-14 September, which could disrupt bunkering and cause further delays.

Brent

The front-month ICE Brent contract has gained by $1.79/bbl on the day, to trade at $104.09/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price is poised to end the week higher than it began, amid escalating US-Iran hostilities in the Middle East, dragging OPEC’s de-facto leader Saudi Arabia in the crossfire.

The Iran-backed, Yemeni militant group, the Houthis, have gained control of the Yemeni port city of Mokha and the islands of Hanish, advancing down the Red Sea coast.

“Oil prices surged again yesterday as tensions intensified in the Red Sea,” two analysts from ING Bank noted.

The move will allow the Houthis to increase control over the Bab al-Mandeb Strait, one of the world’s busiest shipping routes in the southern outlet of the Red Sea, according to analysts.

“As the Houthis have taken control of the Red Sea port of Mokha in Yemen, recent events increase the threat to shipping around the Bab al-Mandeb Strait,” ING Bank’s analysts added.

Downward pressure:

Brent’s price has felt some downward pressure after the Organization of the Petroleum Exporting Countries (OPEC) slashed global demand growth projection for the fifth consecutive time.

The Saudi Arabia-led group has reduced its global oil demand growth projection for 2026 to about 400,000 b/d, around 200,000 b/d lower than its previous estimate.

OPEC sees global oil demand to reach about 105.84 million b/d in 2026.

By Nachiket Tekawade and Aparupa Mazumder

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