Europe & Africa Market Update 30 Sep

Bunker prices in major European and African ports have mostly declined, while fuel availability is tight in Durban and Cape Town.

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($6/mt), and down in Rotterdam ($33/mt) and Gibraltar ($11/mt)
• LSMGO prices down in Rotterdam ($76/mt), Gibraltar ($56/mt) and Durban ($26/mt)
• HSFO prices down in Rotterdam ($20/mt), Durban ($19/mt) and Gibraltar ($5/mt)
• B30-VLSFO price down in Rotterdam ($32/mt)

Bunker prices in Europe and Africa have mostly seen a considerable decline over the past day, tracking the fall in Brent.

Bucking the trend, Durban’s VLSFO price has edged $6/mt up in the past day. Cape Town’s VLSFO price has surged more steeply, by $89/mt, in the past session.

Durban’s VLSFO price is the most expensive among South African ports. Despite Cape Town’s steep price climb, Durban holds a $177/mt premium over Cape Town’s VLSFO price. Durban holds a $45/mt premium over VLSFO offered at Richards Bay.

Durban’s VLSFO price has a $162/mt price premium over Port Louis’ VLSFO price and a sharper $256/mt price premium over VLSFO offered off Namibia’s Walvis Bay.

One supplier has reported extremely tight fuel availability in Durban, while availability in Cape Town is expected to be tight until 4 October, a trader told ENGINE.

Fuel availability is comparatively better in Richards Bay and Algoa Bay, the trader added.

Buyers are recommended longer lead times of 10-15 days to secure deliveries in South African ports, the trader said.

Rough winds of more than 25 knots and swells as high as 2 metres are forecast in Durban from 1-2 October, which may further complicate bunkering in the area.

Brent

The front-month ICE Brent contract has lost by $1.57/bbl on the day, to trade at $103.67/bbl at 09.00 GMT.

Upward pressure:

Brent crude's price has continued to trade well above the $100/bbl threshold, after US President Donald Trump dismissed claims of easing economic sanctions on Iran.

Media reports suggesting that Trump has offered to release frozen Iranian funds, in exchange for Tehran to reopen the Strait of Hormuz to commercial navigation, are false, Trump said on social media platform Truth Social.

The statement comes amid stalled mediation efforts between Washington and Tehran, following a complete absence of diplomatic breakthrough at the United Nations General Assembly summit in New York earlier this month.

Notably, Tehran has actively demanded that the White House releases its frozen assets in order to restore vessel movement through the Strait of Hormuz back to normalcy.

Oil prices remain more than 60% higher year-to-date, amid the ongoing escalation in the Middle East, that has now pulled Saudi Arabia into it, two analysts from ING Bank noted.

Downward pressure:

Brent crude's price has felt some downward pressure after the American Petroleum Institute (API) reported a rise in US crude stocks.

US crude oil inventories increased by 1.02 million bbls in the week ending 25 September, the API reported.

Market analysts had expected an inventory draw of 578,000 b/d instead, ING Bank's analysts added.

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

By Nachiket Tekawade and Aparupa Mazumder

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