Europe & Africa Market Update 15 Dec

Bunker fuel prices in major European and African ports have moved in mixed directions, and ships at Gibraltar are facing long wait times.

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

Changes on the day from Friday to 09.00 GMT today:

• VLSFO prices up in Durban ($2/mt) and Gibraltar ($1/mt), and down in Rotterdam ($3/mt)
• LSMGO prices down in Gibraltar ($10/mt) and Rotterdam ($8/mt)
• HSFO prices unchanged in Durban, and down in Rotterdam and Gibraltar ($3/mt)

LSMGO prices at Rotterdam and Gibraltar have fallen steeply over the weekend.

The LSMGO price at Algeciras has also slumped considerably and is now at a $12/mt discount to Gibraltar, compared to a $6/mt premium observed on Friday.

Conversely, Ceuta’s LSMGO price has increased since Friday, narrowing its discount to Gibraltar by $23/mt over the weekend.

Prompt supplies remain tight at all three Gibraltar Strait ports, with buyers advised to enquire about any fuel grade with around a week of notice, a trader told ENGINE.

Rough weather at Gibraltar over the weekend had disrupted operations, but traffic has now resumed, according to shipping agent A. Mateos & Sons.

Around 20 vessels are currently awaiting bunkers at Gibraltar, and most suppliers are delayed by more than a day, port agent MH Bland said. Algeciras and Ceuta are also facing some delays, the port agent added.  

Brent

The front-month ICE Brent contract has lost by $0.48/bbl on the day from Friday, to trade at $61.28/bbl at 09.00 GMT.

Upward pressure:

Escalating geopolitical tensions have provided some support to Brent crude’s price over the weekend.

Last week, US President Donald Trump-led government announced fresh sanctions on six oil tankers transporting Venezuelan crude, following the seizure of a tanker off Venezuela's coast.

“President Trump announced new sanctions on three of Venezuelan President Maduro’s nephews as well as six oil tankers,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

The news has raised some supply concerns, according to market analysts. “Until this latest escalation, Venezuela had been raising its oil exports,” Hynes said.

The oil market is also facing heightened tensions between Russia and Ukraine, “despite the US still pushing for a peace deal,” he further added.

Downward pressure:

Weighing on Brent’s price, the total number of rigs drilling for crude oil in the US rose by one last week to 414 units, according to Baker Hughes.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.

Additionally, recent projections by energy agencies have revived concerns over a potential supply glut – putting downward pressure on Brent’s price.

The International Energy Agency (IEA) sees global oil supply to grow by 3.3 million b/d to average 106.2 million b/d in 2025 and rise by about 2.4 million b/d to average 108.6 million b/d in 2026.

“Crude oil also fell as weakness in US equity markets added to bearish sentiment about oversupply,” Hynes noted.

Meanwhile, US-based Energy Information Administration (EIA) expects global liquid fuels production to grow by 3 million b/d to reach 106.1 million b/d in 2025 and by another 1.3 million b/d to touch 107.4 million b/d next year.

By Nachiket Tekawade and Aparupa Mazumder

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