Europe & Africa Market Update 27 Mar

Bunker benchmarks in European and African ports have moved in mixed directions, and Malta grapples with rough weather.

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

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($28/mt) and Rotterdam ($26/mt), and down in Durban ($98/mt)
• HSFO prices up in Rotterdam ($23/mt), and down in Durban ($125/mt)
• LSMGO prices down in Rotterdam ($27/mt) and Gibraltar ($18/mt)
• B30-VLSFO prices down in Gibraltar ($26/mt) and Rotterdam ($11/mt)

Durban's HSFO price has fallen more sharply than its VLSFO price in the last day. This has widened the port’s Hi5 spread sharply, to $208/mt, and significantly increased the economic benefit for scrubber-fitted ships to bunker HSFO in the South African port.

The VLSFO price for bunkering off Malta has fallen by $47/mt in the past session, while the grade’s price has increased in Gibraltar. Consequently, Malta’s discount to Gibraltar’s VLSFO price has widened by $75/mt in a single session.

All fuel grades are readily available for fixing with deliveries off Malta, a trader told ENGINE.

Rough north-westerly winds of more than 40 knots and high swells are forecast off Malta. Bunker operations are currently being carried out in Area 4, port agent MH Bland said. Loaded tankers and vessels with overall lengths of more than 250 metres are not allowed in Area 4, MH Bland added.

Brent

The front-month ICE Brent contract has gained by $3.74/bbl on the day, to trade at $109.63/bbl at 09.00 GMT.

Upward pressure:

Brent crude has felt upward pressure as concerns over oil supply disruptions in the Middle East continues to drive prices higher.

The US is expected to send more military personnels from its 82nd Airborne Division to the Middle East, Reuters reported citing two sources. The move would add to the huge military buildup in the region.

A further escalation could significantly intensify the conflict - now entering its fourth week - and deepen the disruption already felt across global markets, analysts said.

“With both sides continuing attacks and the US reportedly reinforcing its military presence in the region, concerns over supply disruptions remain elevated,” two analysts from ING Bank noted.

Downward pressure:

While there are no significant downward pressures on Brent’s price today, market participants will keep an eye on renewed possibilities of negotiations between the US and Iran.

The US is extending its pause on strikes targeting Iranian power plants by 10 more days, according to President Donald Trump.

“Oil prices steadied after US President Donald Trump again pushed back the deadline for striking Iran’s energy,” ING Bank analysts said.

Washington will not strike Iran’s energy facilities until 6 April at 20.00 ET (00.00 GMT), he said on the social media platform Truth Social.

“Extending the ceasefire takes some near-term heat out of the market,” the two analysts added.

By Nachiket Tekawade and Aparupa Mazumder

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