Europe & Africa Market Update 28 Sep

Bunker prices in European and African ports have moved in mixed directions, and prompt fuel supply is tight at the Gibraltar Strait ports.

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

Changes on the day from Friday to 09.00 GMT today:

• VLSFO prices up in Durban ($56/mt), Rotterdam ($8/mt) and Gibraltar ($2/mt)
• LSMGO prices unchanged in Durban, and down in Gibraltar ($54/mt) and Rotterdam ($4/mt)
• HSFO prices up in Durban ($19/mt) and Rotterdam ($18/mt), and down in Gibraltar ($9/mt)
• B30-VLSFO price down in Rotterdam ($4/mt)

Gibraltar’s LSMGO price has slumped over the weekend, after a lower-priced stem of 50-150 mt, fixed at $1,475/mt, potentially put downward pressure on the benchmark.

Rotterdam’s LSMGO price has seen a comparatively smaller dip.

Consequently, Gibraltar’s LSMGO price premium over Rotterdam has dropped by $50/mt since Friday.

Gibraltar’s HSFO price dropped $9/mt over the weekend, compared to an $18/mt rise in Rotterdam. Consequently, Gibraltar’s price premium over Rotterdam’s HSFO has dropped $27/mt.

Fuel availability is tight for prompt supplies at the Gibraltar Strait ports, with buyers recommended lead times of 10-12 days, a trader told ENGINE.

Some suppliers in Gibraltar and Algeciras may be delayed by 8-12 hours on deliveries, port agent MH Bland said.

Brent

The front-month ICE Brent contract has gained by $3.35/bbl on the day from Friday, to trade at $108.04/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has moved close to $110/bbl as peace negotiations between Washington and Tehran remain deadlocked.

US President Donald Trump has dismissed the seven-day peace deal proposed by Tehran on the sidelines of the United Nations General Assembly (UNGA) in New York last week.

The proposal, which has since been rejected, would have reopened the Strait of Hormuz to commercial navigation in exchange for Washington releasing all frozen Iranian assets.

Downward pressure:

Brent crude’s price has felt some downward pressure after Baker Hughes reported a rise in US crude oil rig activity.

The total number of rigs drilling for crude oil in the US increased by three over the week to 455 units last week.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.

By Nachiket Tekawade and Aparupa Mazumder

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