Europe & Africa Market Update 23 July

Bunker prices across Europe and Africa have mostly moved higher, while fuel availability remains tight for prompt deliveries in the ARA hub.

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

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($29/mt), Gibraltar ($19/mt), and down in Rotterdam ($6/mt)
• LSMGO prices up in Durban ($43/mt), Rotterdam ($20/mt) and Gibraltar ($10/mt)
• HSFO prices up in Rotterdam ($18/mt), Durban ($3/mt) and Gibraltar ($1/mt)
• B30-VLSFO prices up in Gibraltar ($38/mt) and Rotterdam ($32/mt)

Bunker benchmarks have mostly risen in the past day, tracking the upward movement in Brent futures.

Meanwhile, Rotterdam’s VLSFO price has dipped by $6/mt. A large 500-1,500 mt VLSFO stem fixed at a low price of $678/mt has put some downward pressure on the benchmark.

Meanwhile, the Dutch port’s HSFO price has increased. The diverging price movements have narrowed the port’s Hi5 spread by $24/mt in a single day.

A narrowing Hi5 spread reduces the economic benefit for scrubber-fitted ships to bunker HSFO in the port.

Fuel availability remains tight for prompt deliveries in the ARA hub, with recommended lead times of 5-7 days to ensure good coverage, a trader said.

Brent

The front-month ICE Brent contract has jumped $3.53/bbl on the day, to trade at $97.82/bbl at 09.00 GMT.

Upward pressure:

Brent crude is trading close to the $100/bbl threshold as the US-Iran conflict has effectively spread to the Red Sea.

Yemen’s Iran-backed Houthi militants have targeted two oil tankers – the Encelia and Layla – in the Bab al-Mandeb Strait for violating their maritime embargo on Saudi Arabian oil shipments.

Meanwhile, US President Donald Trump has made it clear that US military action in the region will be further ramped up, as the conflict shows no sign of de-escalation.

“Any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz… the United States will bomb and destroy ONE BRIDGE OR POWER PLANT,” Trump wrote on social media platform Truth Social.

Downward pressure:

Brent’s price came under some downward pressure after the US Energy Information Administration (EIA) reported an increase in US crude stocks.

US crude oil inventories gained by 2 million bbls to 411.7 million bbls in the week ending 17 July, according to data from the EIA. A build in US crude stocks can indicate lower demand for oil.

By Nachiket Tekawade and Aparupa Mazumder

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