Europe & Africa Market Update 6 Jan

Bunker prices across European and African ports have moved mostly higher, and VLSFO supplies are quicker to source than HSFO in Durban.

IMAGE: Aerial view of Durban port landscape. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($20/mt), Gibraltar ($14/mt), and down in Rotterdam ($4/mt)
• LSMGO prices up in Gibraltar ($15/mt) and Rotterdam ($11/mt)
• HSFO prices up in Durban ($40/mt), Gibraltar ($8/mt) and Rotterdam ($7/mt)
• Gibraltar B30-VLSFO premium over VLSFO down $17/mt to $348/mt

Benchmark bunker prices in Rotterdam, Gibraltar and Durban have moved mostly higher, tracking the surge in Brent futures. However, the VLSFO price in Rotterdam has dipped slightly. A lower-priced VLSFO stem of more than 1,500 mt fixed at $408/mt has put some downward pressure on the benchmark.

The HSFO price has surged more steeply in Durban than in Rotterdam and Gibraltar.

Consequently, Durban’s HSFO price premiums over Rotterdam and Gibraltar have increased by $32-$33/mt in a single day.

HSFO supply is tight in Durban, with buyers requested to book deliveries around a week in advance to get good coverage from suppliers, while VLSFO supplies require a shorter notice of 2-4 days, a trader told ENGINE.

Rough north-easterly winds of more than 25 knots are forecast between 8-9 January, which could disrupt bunkering operations and cause further delays in Durban.

Meanwhile, weather-related congestion in Gibraltar is gradually easing, with around 10 vessels currently awaiting bunkers, down from 19 vessels yesterday. Suppliers are running between 6–12 hours behind schedule, port agent MH Bland said.

Brent

The front-month ICE Brent contract has gained by $2.05/bbl on the day, to trade at $62.09/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has moved higher as geopolitical concerns have rekindled in the global oil market following the detention of Venezuelan President Nicolás Maduro by US troops.

US President Donald Trump also confirmed that the US embargo on Venezuelan oil would remain in place.

Venezuela is one of the founding members of the Organization of the Petroleum Exporting Countries (OPEC) and controls almost 17% of global oil reserves, or 303 billion bbls, Reuters reports.

“While the Trump administration has been taking a more hawkish stance against Venezuela in recent months, developments over the weekend have led to shockwaves around the globe,” remarked two analysts from ING Bank.

The outlook for Venezuelan oil production will hinge on the trajectory of US sanctions policy, according to market analysts.

The Trump-led US administration’s move “has potentially significant implications for the oil market,” ING Bank’s analysts added.

Downward pressure:

Ample global oil supply as the market moves into 2026 has capped gains in Brent crude’s price.

While recent developments in Venezuela and the unprecedented capture of its President by the US, have heightened geopolitical risk, market analysts warn that the possible return of Venezuelan barrels could add pressure to an already oversupplied market.

The concerns come as Trump said Washington would take control of the OPEC member.

“The reaction in oil prices following the US arrest of Venezuelan President Nicolas Maduro suggests the market is more focused on the potential for supply increases in the longer term,” ING Bank’s analysts added.

By Nachiket Tekawade and Aparupa Mazumder

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