Europe & Africa Market Update 5 May 2025
Most European bunker prices have tracked Brent's decline, and Gibraltar's bunkering operations continue to face severe congestion.
IMAGE: View from the Rock of Gibraltar to Algeciras. Getty Images
Changes on the day from Friday to 09.00 GMT today:
- VLSFO prices down in Gibraltar ($6/mt), Durban ($3/mt) and Rotterdam ($1/mt)
- LSMGO prices down in Gibraltar ($8/mt) and Rotterdam ($1/mt)
- HSFO prices up in Durban ($14/mt) and Gibraltar ($4/mt), and down in Rotterdam ($6/mt)
Over the weekend, fuel prices at the Dutch port of Rotterdam have recorded declines, widening its Hi5 spread by $5/mt to $34/mt.
The price moves have narrowed Gibraltar's benchmark price premium over Rotterdam's by $5/mt to $52/mt.
The port of Gibraltar continues to face severe congestion, with 21 vessels now awaiting bunkers, according to port agent MH Bland. Delays of 12-24 hours are being advised by two suppliers, because of a lack of space to bunker.
In Algeciras, though operations have resumed, the Inner Anchorage area and the Delta area continue to face congestion, the port agent added.
At the African Walvis Bay, prompt delivery is good, with lead time of 3-6 days recommended, according to a source.
Brent
The front-month ICE Brent contract has lost $1.91/bbl on the day from Friday, to trade at $59.98/bbl at 09.00 GMT.
Upward pressure:
Brent’s price found some support as pressure on Tehran’s oil exports mounted, after US President Donald Trump threatened to impose secondary sanctions on all countries buying Iranian oil and oil products on Thursday.
“All purchases of Iranian Oil, or Petrochemical products, must stop, NOW!” Trump wrote on social media app Truth Social.
The news comes after planned talks with Iran over its advancing nuclear program were postponed. Any country purchasing oil products from Iran “will not be allowed to do business with the United States of America in any way, shape, or form," Trump added.
“Crude oil prices recovered slightly… as US President Donald Trump threatened broader sanctions against buyers of Iranian crude,” two analysts from ING Bank noted.
Downward pressure:
Brent’s price plunged after leading oil producers group OPEC+ announced a larger-than-expected supply boost in June.
The eight OPEC+ members participating in voluntary production cuts, have agreed to collectively increase supply by 411,000 b/d in June, from May’s production levels.
“OPEC+ is implementing another aggressive supply hike,” ING Bank’s head of commodities strategy Warren Patterson said. “Effective in June, this increase solidifies a shift in policy,” he added.
This is the second month in a row that they plan to expedite the unwinding of their joint 2.2 million b/d output cuts. “The higher production hikes appear to be in response to a lack of compliance by some members of the group,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.
By Konica Bhatt, Samantha Shaji and Aparupa Mazumder
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