Europe & Africa Market Update 13 Aug

Bunker prices in European and African ports have declined, while fuel availability in Las Palmas is tight.

IMAGE: The commercial harbour in Las Palmas. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Rotterdam ($25/mt), Durban ($19/mt) and Gibraltar ($14/mt)
• LSMGO prices down in Durban ($40/mt), Rotterdam ($15/mt) and Gibraltar ($2/mt)
• HSFO prices down in Gibraltar ($25/mt), Durban ($14/mt) and Rotterdam ($8/mt)
• B30-VLSFO prices down in Rotterdam ($18/mt)

Regional bunker benchmarks have dropped over the past day, tracking Brent's tumble.

The LSMGO price has inched slightly lower in Gibraltar, while it has dropped considerably in Rotterdam.

A 50-150 mt stem, fixed in Gibraltar at a higher price of $1,364/mt, has provided support and limited the drop in the port’s LSMGO benchmark.

Over at Las Palmas, the LSMGO price has fallen more sharply, by $39/mt, over the past session. An LSMGO stem of more than 1500 mt, fixed at a low price of $1,280/mt, has put additional downward pressure on Las Palmas’ benchmark.

Fuel availability in Las Palmas is tight, with buyers advised lead times of around 10-14 days to secure deliveries of any fuel grade, a trader told ENGINE.

Brent

The front-month ICE Brent contract has lost by $1.84/bbl on the day, to trade at $87.37/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has continued to trade above $85/bbl mark as rising hostilities in the Middle East keeps the market on edge.

Iran said the Strait of Hormuz will remain closed unless Washington agrees to the six demands, including a total cessation of all US military action in the region and the immediate withdrawal of all US forces from the region.

In response, US President Donald Trump demanded that Iran pay “compensation” to Washington for war-related damages.

“There was little in the way of fresh developments between the US and Iran, with both sides remaining in a deadlock,” two analysts from ING Bank noted.

Downward pressure:

Brent’s price has declined after the US Energy Information Administration (EIA) reported a significant build in crude stocks.

Commercial US crude oil inventories increased by a massive 17.4 million bbls to 424.4 million bbls in the week ending 7 August, according to data from the EIA.

“The EIA’s weekly report was fairly bearish,” ING Bank’s analysts said, adding this is the largest weekly increase since January 2023.

The American Petroleum Institute (API) also reported a sizeable inventory gain of 9.07 million bbls during the same week.

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

By Nachiket Tekawade and Aparupa Mazumder

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