Europe & Africa Market Update 20 Apr

Bunker benchmarks at European and African ports have fallen over the weekend, while prompt bunker supply is tight in the ARA hub.

IMAGE: The Europoort area in the Port of Rotterdam. Getty Images

Changes on the day from Friday to 09.00 GMT today:

• VLSFO prices down in Gibraltar ($32/mt), Durban ($20/mt) and Rotterdam ($4/mt)
• LSMGO prices down in Rotterdam ($57/mt) and Gibraltar ($28/mt)
• HSFO prices down in Rotterdam ($62/mt), Durban ($36/mt) and Gibraltar ($19/mt)
• B30-VLSFO price down in Rotterdam ($28/mt) and Gibraltar ($5/mt)

Regional bunker benchmarks have fallen over the weekend, reflecting the slump in the Brent's price.

Rotterdam’s HSFO price has fallen more sharply compared to the port’s VLSFO price, significantly widening the port’s Hi5 spread, by around $58/mt, over the weekend.

This also significantly increases the economic benefit for scrubber-fitted ships to bunker HSFO in Rotterdam.

HSFO remained Rotterdam’s most popular bunker fuel grade during the first quarter, making up about 34% of the port’s total bunker sales, even as bunker sales fell sharply over the quarter in the Dutch port.

Rotterdam’s LSMGO price has fallen twice as much in Gibraltar, widening its price discount to Gibraltar by around $29/mt since Friday.

Securing prompt HSFO, VLSFO and LSMGO bunker supplies in the ARA hub is tight, with buyers recommended to enquire around 4-5 days in advance to get offers from a wide selection of suppliers, a trader said.

The limited fall in Rotterdam’s VLSFO price also reduced Gibraltar’s VLSFO price premium by around $28/mt during the weekend.

Ships calling for bunkers in Gibraltar are seeing some congestion, with around 15 vessels currently waiting due to unavailability of barges, port agent MH Bland said.

Brent:

The front-month ICE Brent contract has lost by $2.25/bbl on the day from Friday, to trade at $95.20/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has opened the week higher, clawing back some previous losses, after the US Navy said it has seized another Iranian vessel attempting to enter an Iranian port, undermining the US blockade.

Iranian-flagged cargo vessel M/V Touska was moving towards Iran’s Bandar Abbas port when it was seized by US forces, the US Central Command (CENTCOM) reported.

This news has “rekindled market concerns of further escalation in the Middle East conflict, undermining any fresh ceasefire talks between the two nations,” two analysts from ING Bank noted.

Downward pressure:

The US and Iran are scheduled to resume negotiations today in Islamabad, Pakistan – in another attempt to reach a ceasefire deal, according to media reports.

Although Iran has not confirmed its presence in today’s meeting, Brent’s price has felt downward pressure following the news.

Brent’s losses follow a sharp sell-off on Friday, triggered by Iranian foreign minister Seyed Abbas Araghchi's announcement on X that the Strait of Hormuz will be fully reopened to commercial vessels.

US President Donald Trump welcomed the news in a post on social media platform Truth Social, adding that the US naval blockade of Iranian ports will remain in effect until negotiations with Tehran are “100% complete”.

“The oil market continues to edge lower amid hopes that the US and Iran extend their ceasefire by another two weeks, along with a potential resumption in talks to bring an end to the war,” ING Bank’s analysts added.

By Nachiket Tekawade and Aparupa Mazumder

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