Europe & Africa Market Update 21 Sept
European and African bunker prices have mostly gained since Friday, while prompt fuel availability is tight in the ARA.
IMAGE: The Europoort area in the Port of Rotterdam. Getty Images
Changes on the day from Friday to 09.00 GMT today:
- VLSFO prices up in Rotterdam ($25/mt), Durban ($12/mt) and Gibraltar ($2/mt)
- LSMGO prices up in Durban ($15/mt), Rotterdam and Gibraltar ($4/mt)
- HSFO prices up in Durban ($4/mt), and down in Rotterdam ($17/mt) and Gibraltar ($3/mt)
- B30-VLSFO prices up in Gibraltar ($15/mt) and Rotterdam ($9/mt)
The price of HSFO in Rotterdam has seen a significant decrease since Friday, with a 150-500 mt stem fixed at $581/mt, possibly pushing the benchmark down.
At the same time, the port's VLSFO price has gained sharply.
Consequently, the port’s Hi5 spread has widened by around $42/mt over the weekend, to $114/mt, considerably increasing the economic benefit for scrubber fitted ships to bunker HSFO in the port.
Fuel availability remains tight in ARA for prompt delivery dates, with buyers advised lead times ranging between 5-7 days to secure supplies at competitive prices, a trader told ENGINE.
Meanwhile, there are around 11 vessels waiting at the Port of Gibraltar for bunkers as of Monday morning, port agent MH Bland said, citing unavailability of bunker barges and lack of space, among reasons.
Brent
The front-month ICE Brent contract has lost by $0.81/bbl on the day from Friday, to trade at $101.90/bbl at 09.00 GMT.
Upward pressure:
Brent crude’s price has felt some upward pressure as supply-related risks continue to persist.
The US President Donald Trump has issued fresh warnings, stating that Iran risks being “wiped out” entirely, if it does not comply with Washington’s demands.
In response, Iranian military said further attacks will trigger retaliation against US bases in the region and Washington's allies will be considered parties to the conflict.
“The broadening of the Middle East conflict also increases the odds of the conflict persisting for the foreseeable future, and keeping oil supply from the Persian Gulf constrained,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
Downward pressure:
Brent crude’s price has started the week on a soft note, as the market sets its sights on the United Nations General Assembly (UNGA) summit, scheduled to take place in New York later this week.
The meeting will be attended by Iranian President Masoud Pezeshkian. Traders are quietly betting that the high-stakes diplomacy could yield a breakthrough, potentially easing some supply disruptions.
In other news, Trump will hold a high-stakes summit in Washington with Chinese counterpart Xi Jinping on 24 September.
The news has lifted some market confidence as a dialogue between the world's two top economic superpowers could stabilise trade corridors that are currently in fragile conditions.
“Hopes for constructive discussions at this week's UN General Assembly (UNGA) and the upcoming Trump-Xi meeting, helped improve market sentiment,” two analysts from ING Bank reported.
By Nachiket Tekawade and Aparupa Mazumder
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