Europe & Africa Market Update 22 Jan

Bunker prices across European and African ports have mostly edged higher, and Gibraltar is facing weather-related congestion.

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

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($10/mt) and Gibraltar ($7/mt), and down in Rotterdam ($3/mt)
• LSMGO prices up in Rotterdam and Gibraltar ($14/mt)
• HSFO prices up in Durban ($7/mt), Gibraltar ($4/mt) and Rotterdam ($3/mt)
• B30-VLSFO prices up in Rotterdam ($12/mt), and unchanged in Gibraltar

Most conventional fuel prices have moved higher over the past session, in line with the Brent price.

Conversely, Rotterdam’s VLSFO price has edged lower. A lower-priced 150-500 mt stem, fixed at $416/mt, may have put downward pressure on the price.

While LSMGO prices at both Rotterdam and Gibraltar have gained in equal measure, the grade is priced around $61/mt more in Gibraltar compared to Rotterdam.

Prompt supplies are tight in Gibraltar, a trader said.

Inbound traffic remains suspended in the port due to rough weather which has caused congestion, according to port agent MH Bland. Around 19 vessels are currently awaiting bunkers, the port agent said.

Rough weather is expected to continue until early next month in the area and increasing supply backlogs at the port will result in a lot of delays, the trader said.

Brent

The front-month ICE Brent contract has gained $1.17/bbl up on the day, to trade at $64.93/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has edged higher amid renewed supply concerns.

The move followed OPEC+ producer Kazakhstan’s decision to halt output at its major Tengiz and Korolev oilfields due to power distribution disruptions.

Production at Tengiz oilfield was halted last week after a fire broke out at a power facility supplying the field.

Besides, the International Energy Agency’s (IEA) monthly oil market report provided some boost to Brent’s price today.

The agency revised its oil demand growth estimates for 2026 from 860,000 b/d to 930,000 b/d.

“[Oil market] sentiment was boosted by a slightly more positive outlook from the International Energy Agency,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

Brent’s price has felt some downward pressure after the American Petroleum Institute (API) reported a big rise in US crude stocks.

US crude oil inventories increased by 3.04 million bbls in the week ending 16 January, according to the API.

A rise in US crude stocks can indicate lower demand for oil and put some downward pressure on Brent's price, market analysts say.

By Nachiket Tekawade and Aparupa Mazumder

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