Europe and Africa Market Update 2 Oct
Prices of across European and African ports have moved in mixed directions, and bunker deliveries are delayed at Gibraltar and Algeciras.
IMAGE: Cruise ship in the Port of Gibraltar. Getty Images
Changes on the day to 09.00 GMT today:
- VLSFO prices up in Rotterdam ($6/mt), and down in Durban ($3/mt) and Gibraltar ($2/mt)
- LSMGO prices up in Gibraltar ($19/mt) and Rotterdam ($1/mt), and down in Durban ($6/mt)
- HSFO prices up in Rotterdam ($2/mt), and down in Durban ($11/mt) and Gibraltar ($5/mt)
Rotterdam’s LSMGO price has been broadly steady in the past session, despite Brent declining. Its rise has been supported by two higher-priced stems fixed at $1,340-1,364/mt.
All three ports in the ARA bunkering hub are seeing tight prompt fuel availability, according to a trader. Lead times of 5-7 days are recommended for good coverage.
Gibraltar’s LSMGO price has recorded a significant increase, widening its premium over Rotterdam’s LSMGO price by $18/mt to $117/mt.
Prompt fuel availability is tight at the Mediterranean ports of Gibraltar, Algeciras and Ceuta as well. Buyers are recommended a longer notice period of 7-10 days to secure any fuel grade at competitive prices, a trader told ENGINE.
Weather conditions are not conducive to bunkering at Gibraltar and Algeciras.
There are 12 vessels awaiting bunkers at Gibraltar, up from two vessels on Wednesday. Suppliers are running anywhere from 4-24 hours behind schedule.
At Algeciras, some anchorages are facing congestion. Suppliers are severely delayed on deliveries here as well.
Brent
The front-month ICE Brent contract has lost $1.15/bbl on the day, to trade at $99.48/bbl at 09.00 GMT.
Upward pressure:
Brent crude’s price has held fairly steady amid mounting security concerns in the Middle East.
The US Central Command (CENTCOM) has established a new unit in the region, called Task Force Falcon, to deploy one-way attack drones “from above, on, and below the sea".
Military support staff from the US and regional partners, including Bahrain, will jointly conduct the operation, CENTCOM said.
“Crude oil gained as tensions rose in the Middle East,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
The development comes amid news that Washington has sent a third aircraft carrier and an additional marine expeditionary unit of up to 10,000 more troops to the Middle East.
“The prospect of renewed attacks by the US were heightened follow a report in the Wall Street Journal that it was sending a third aircraft carrier strike group to the Middle East,” Hynes added.
Downward pressure:
Brent crude’s price has come under downward pressure following reports that Saudi Arabia has resumed crude oil loadings at its Red Sea terminal of Yanbu.
Saudi Arabia has resumed oil tanker loadings from the port of Yanbu after restarting operations on the East-West Pipeline, Reuters reported.
Tanker loadings at Yanbu came to an abrupt halt last month, following a drone attack on the key pipeline.
“Oil prices edged lower in early trading… as recovering Middle East export flows helped ease supply concerns,” two analysts from ING Bank noted.
By Samantha Shaji and Aparupa Mazumder
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