Europe & Africa Market Update 24 Sep

Bunker prices in European and African ports have mostly gained, and fuel availability is stable off Malta.

IMAGE: Tankers during a bunker operation off Malta. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($72/mt), Gibraltar ($41/mt) and Rotterdam ($12/mt)
• LSMGO prices up in Durban ($126/mt), Gibraltar ($89/mt) and Rotterdam ($82/mt)
• HSFO prices up in Durban ($51/mt), Gibraltar ($47/mt) and Rotterdam ($38/mt)
• B30-VLSFO price unchanged in Rotterdam

Bunker prices have gained sharply in regional hubs, tracking the increase in Brent.

A lower-priced, 150-500 mt VLSFO stem, fixed in Rotterdam at $665/mt, has limited the grade's price increase at the Dutch port compared to increases seen at Gibraltar and Durban.

The LSMGO price off Malta has increased $152/mt, much more sharply than Gibraltar’s LSMGO price. Two higher-priced LSMGO offers, between $1,579-1,604/mt, have provided an additional upward push to the benchmark.

LSMGO is seeing high demand off Malta. Fuel availability is comparatively stable than last week, and lead times have reduced to 3-4 days for LSMGO, VLSFO and ULSFO, from 5-7 days last week, a trader said. There is limited HSFO availability off Malta.

Brent

The front-month ICE Brent contract has gained by $6.34/bbl on the day, to trade at $105.77/bbl at 09.00 GMT.

Upward pressure:

Brent crude's price has reversed course, surpassing the $105/bbl mark, as hopes of a diplomatic breakthrough took a backseat at the United Nations General Assembly summit.

US President Donald Trump threatened Iran with "annihilation" during his speech at the summit, while Iranian President Masoud Pezeshkian retaliated to Trump's remarks by stating that Tehran will not bow down to the US' "bullying mentality."

Oil prices continue to find steady support amid these latest developments, as a swift end to the Middle East conflict remains unlikely, market analysts noted.

Oil prices remain more than 60% higher year-to-date, as ongoing disruption in the Middle East continue to strain the global oil market, two analysts from ING Bank noted.

Downward pressure:

Brent crude's price has felt some downward pressure after the US Energy Information Administration (EIA) reported a rise in US crude stocks.

Commercial US crude oil inventories increased by around 3 million bbls, to 426.4 million bbls, in the week ending 18 September, according to data from the EIA.

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

By Nachiket Tekawade and Aparupa Mazumder

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