Europe & Africa Market Update 13 Mar

Prices have mostly moved up in European and African ports, and prompt supplies are tight at the Gibraltar strait ports.

IMAGE: Aerial view of the Bay of Gibraltar. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($29/mt) and Gibraltar ($12/mt), and down in Rotterdam ($14/mt)
• LSMGO prices up in Durban ($60/mt), Gibraltar ($28/mt) and Rotterdam ($14/mt)
• HSFO prices up in Gibraltar ($22/mt) and Rotterdam ($16/mt)
• B30-VLSFO prices up in Rotterdam ($15/mt) and Gibraltar ($13/mt)

Conventional fuel prices at Gibraltar have recorded gains over the past session.

Over the past session, the Mediterranean port's VLSFO price has widened by around $26/mt compared to Rotterdam's, to trade at a premium of $75/mt.

Gibraltar’s HSFO price is currently trading at a $73/mt premium to Rotterdam, while its LSMGO price is around $261/mt more compared to the Dutch port.

Fuel availability is tight for prompt supplies of all fuel grades at the Gibraltar strait ports, a trader told ENGINE.

Demand remains healthy at the port, with around 46 vessels waiting for bunkers at the port between 13-19 March, shipping agent A Mateos & Sons said.

Brent

The front-month ICE Brent contract has gained by $6.89/bbl on the day, to trade at $97.89/bbl at 09.00 GMT.

Upward pressure:

Brent has moved closer to $100/bbl mark once again, following major disruptions in the Persian Gulf.

Over last night, two tankers caught fire after being struck by Iranian missiles in Iraqi territorial waters, according to Iraq’s national oil marketer State Oil Marketing Company (SOMO).

Iraq’s oil ports have completely ceased operations following the attacks, Reuters reported.

The latest attacks mark an escalation in the Middle East conflict, raising the number of vessels struck in the region ‌to at least 16, the report added.

“There are no signs of de-escalation in the Persian Gulf, so there is no end in sight to the disruptions to oil flows through the Strait of Hormuz,” two analysts from ING Bank said.

Downward pressure:

Brent’s price rally somewhat eased after the US Energy Information Administration (EIA) reported a surge in US crude stocks.

Commercial US crude oil inventories increased by 3.8 million bbls to 443 million bbls in the week ending 6 March, according to data from the EIA.

A rise in US crude stocks can indicate lower demand for oil and put some downward pressure Brent's price.

By Nachiket Tekawade & Aparupa Mazumder

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