Europe & Africa Market Update 18 Sep

Bunker prices in European and African ports have moved in mixed directions, while Durban’s inbound traffic is disrupted by rough weather.

IMAGE: Aerial view of Durban port landscape. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($5/mt), Gibraltar ($4/mt) and Rotterdam ($1/mt)
• LSMGO prices up in Gibraltar ($11/mt) and Rotterdam ($6/mt), and down in Durban ($1/mt)
• HSFO prices up in Rotterdam and Gibraltar ($2/mt), and down in Durban ($6/mt)
• B30-VLSFO prices down in Gibraltar ($9/mt) and Rotterdam ($7/mt)

Durban’s bunker prices have seen marginal changes over the past day. The VLSFO price in the South African port has edged up, while the LSMGO price has dipped.

The HSFO price in Durban has dropped by just $6/mt, while it has surged by $74/mt in Mauritius’ Port Louis.

Port Louis’ benchmark has received support from a higher-priced offer for 500-1,500 mt of HSFO at $1,023/mt. This has widened Durban’s HSFO price discount to Port Louis by $80/mt in a single day to $137/mt.

Durban’s VLSFO price is at a $60/mt discount to Port Louis but carries a $73/mt premium over VLSFO offered off Walvis Bay.

Durban’s LSMGO price carries a $233/mt price premium over Walvis Bay.

Fuel availability is tight for prompt deliveries in Durban, with suppliers recommending lead times of 5-7 days for HSFO, VLSFO and LSMGO, a trader told ENGINE.

High swells of more than 3 metres are forecast in Durban throughout the day. Consequently, inbound traffic at the port has been suspended, the Transnet Port Authority said in a statement.

Brent

The front-month ICE Brent contract has declined by $1.57/bbl on the day, to trade at $102.71/bbl at 09.00 GMT.

Upward pressure:

Brent crude has felt some upward pressure amid escalating Middle East hostilities, with Saudi Arabia now directly involved in the conflict.

Vessel traffic through the Strait of Hormuz continues to remain well below the pre-war average of 140 daily transits, amid repeated attacks and the US Central Command's (CENTCOM) ongoing blockade of the region.

As of Wednesday, 15 vessels attempted to transit the Strait of Hormuz – eight inbound and seven outbound – market intelligence provider Windward reported.

Out of this, nine vessels transited the region with their Automatic Identification System (AIS) turned off, Windward said.

Downward pressure:

Brent crude is poised to end the week lower after reports of ship-to-ship crude transfers eased some panic over Saudi export crisis.

Saudi Arabia is offering crude oil to Asian buyers via ship-to-ship transfer off Oman's Sohar port after drone attacks ​damaged its key East-West oil pipeline to the Red Sea, Reuters reported citing sources.

Moreover, Washington appears more optimistic than much of the market. Crude oil could be flowing out of the vital oil pipeline within days, Reuters reported, citing US energy secretary Chris Wright.

Riyadh is also trying to move oil through the Strait of Hormuz with US military assistance, Wright said on the sidelines of a G20 energy meeting.

By Nachiket Tekawade and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online