Europe & Africa Market Update 28 Nov

Benchmark fuel prices in major European and African ports have remained mostly steady over the past day, while availability remains normal in Hamburg.

IMAGE: Gantry cranes at the Port of Hamburg. Hamburg Port Authority

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar and Durban ($3/mt), and down in Rotterdam ($1/mt)
• LSMGO prices up in Gibraltar ($5/mt), and down in Rotterdam ($5/mt)
• HSFO prices up in Durban ($3/mt), Rotterdam and Gibraltar ($2/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $5/mt to $276/mt
• Gibraltar B30-VLSFO premium over VLSFO down by $8/mt to $356/mt

Hamburg’s LSMGO price has declined by $22/mt in a single session. A lower-priced 150-500 mt stem, fixed at $698/mt, has put downward pressure on the benchmark.

Consequently, Hamburg’s LSMGO premium over Rotterdam has narrowed to $19/mt today, compared to yesterday's premium of $36/mt.

The price of HSFO in Hamburg has also fallen by $11/mt in the past day. A lower-priced 500-500 mt stem, fixed at $376/mt, has weighed on the price. Conversely, Hamburg’s VLSFO price has moved $3/mt higher, widening the port's Hi5 spread by $14/mt.

Fuel availability remains normal and prompt in Hamburg, with a notice of 3-5 days sufficient to get delivery of any fuel grade, a trader told ENGINE.

Brent

The front-month ICE Brent contract has gained by $0.35/bbl on the day, to trade at $63.50/bbl at 09.00 GMT.

Upward pressure:

Oil prices have found support amid prolonged efforts toward a Russia-Ukraine peace framework, with ongoing talks keeping geopolitical risk elevated.

President Vladimir Putin said on Thursday that draft peace proposals discussed by the US and Ukraine could form the basis for future agreements to end the conflict but added that Russia would continue fighting if they do not, according to Reuters.

“President Putin said overnight that the US plan could prove the basis for a deal but that some points require discussion,” ANZ Bank senior commodity strategist Daniel Hynes noted.

Brent futures have also been lifted by growing expectations that the US Federal Reserve will cut interest rates next month, a shift that could spur economic growth and support energy demand.

Market watchers are also watching Sunday’s OPEC+ meeting for any signals on potential output changes.

Downward pressure:

The US Energy Information Administration (EIA) reported a sharp rise in crude inventories, tempering some of Brent’s gains today.

Commercial crude stocks climbed by 2.8 million bbls to 427 million bbls for the week ending 21 November, according to EIA data.

By Nachiket Tekawade and Tuhin Roy

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