Europe & Africa Market Update 14 May
Prices across European and African ports have fallen over the past day, and fuel availability is stable in Turkiye's Istanbul.
IMAGE: Aerial view of a cargo ship in transit in Istanbul, Türkiye. Getty Images
Changes on the day from 09.00 GMT today:
- VLSFO prices down in Durban ($44/mt), Rotterdam ($33/mt) and Gibraltar ($24/mt)
- LSMGO prices down in Durban ($162/mt), Gibraltar ($21/mt) and Rotterdam ($15/mt)
- HSFO prices down in Gibraltar ($14/mt) and Rotterdam ($10/mt)
- B30-VLSFO prices down in Gibraltar ($44/mt) and Rotterdam ($5/mt)
Regional bunker benchmarks have fallen over the past day, tracking the fall in Brent.
Algeciras’ ULSFO price has slumped by $118/mt over the past day. Bunkering ULSFO in Algeciras is now at a $180/mt discount to ULSFO off Malta, while it is around $115/mt cheaper compared to Valencia and Barcelona.
Demand for ULSFO has increased since May last year, when the Mediterranean Emission Control Area was enforced, requiring ships to burn fuel with maximum 0.1% sulphur content.
The supply of ULSFO is quite regular in Algeciras, a trader said.
Off Malta, ULSFO demand is lesser than other fuel grades, but it has increased in the past year, while VLSFO demand has fallen, another trader said. Two out of five suppliers now offer ULSFO at the offshore anchorage.
In Istanbul, ULSFO demand was good till April but has since reduced due to low price gap with LSMGO, a local supplier told ENGINE
Currently Istanbul’s ULSFO is trading almost at parity with the port’s LSMGO price at $1,485/mt.
Availability of ULSFO and other grades is normal in Istanbul and deliveries are available promptly, a trader told ENGINE.
Brent
The front-month ICE Brent contract has declined by $1.08/bbl on the day, to trade at $106.24/bbl at 09.00 GMT.
Upward pressure:
Brent crude’s price has continued to move higher as risks of oil supply disruptions in the Middle East remain elevated.
“Ten weeks on from the start of the Iran war and energy markets remain in limbo,” analysts from ING Bank noted.
Senior US and Chinese officials have reportedly agreed that no country should be allowed to collect shipping tolls to pass through the Strait of Hormuz, the US state department told Reuters.
This development has added upward pressure on oil prices as market analysts interpret it as a sign that Washington and Beijing are seeking common ground in efforts to pressure Tehran into relinquishing control over the strategic waterway.
“If Hormuz remains shut, the second quarter of 2026 will see the largest quarterly crude inventory drawdown in history at 6.5mb/d [6.5 million b/d],” ANZ Bank’s senior commodity strategist Daniel Hynes said.
Downward pressure:
While there are no significant downward pressures on Brent’s price today, market participants will closely watch the highly anticipated meeting between US President Donald Trump and Chinese President Xi Jinping during Trump's state visit to Beijing later this week.
The visit is expected to include talks focused on the evolving situation in the Middle East, while also helping pave the way for broader future cooperation.
Market analysts expect China to “use its influence” to persuade Iran closer towards a ceasefire deal, two analysts from ING Bank noted. “Clearly, this is easier said than done,” they added.
By Nachiket Tekawade and Aparupa Mazumder
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