Europe & Africa Market Update 6 May

Conventional fuel prices across European and African ports have dipped, and fuel availability has improved off Malta.

IMAGE: Tankers during a bunker operation off Malta. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Durban ($81/mt), Gibraltar ($40/mt) and Rotterdam ($26/mt)
• LSMGO prices down in Durban ($143/mt), Rotterdam ($102/mt) and Gibraltar ($80/mt)
• HSFO prices down in Durban ($54/mt), Rotterdam ($48/mt) and Gibraltar ($42/mt)
• B30-VLSFO prices down in Gibraltar ($76/mt) and Rotterdam ($56/mt)

Regional bunker benchmarks have dropped in the past day, tracking the fall in brent.

The LSMGO price off Malta has dropped around $111/mt in the past day, sharper than the decline in the grade's price at Gibraltar. This has narrowed the offshore anchorage's price premium over Gibraltar by $31/mt in a single session.

Fuel availability has improved off Malta over the last week as loading delays have resolved, a trader told ENGINE. All suppliers are offering LSMGO and other fuel grades on a prompt basis, the trader added.

Rough winds of more than 30 knots are forecast off Malta on Thursday, which could suspend bunker deliveries in some bunkering areas.

Brent

The front-month ICE Brent contract has declined by $9.41/bbl on the day, to trade at $103.29/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has felt some upward pressure after the American Petroleum Institute (API) reported a sizeable decline in US crude stocks.

US crude oil inventories fell by 8.1 million bbls in the week ending 1 May, according to estimates by the API.

A decline in US crude stocks typically indicates improvement in demand for oil and can put some upward pressure on Brent's price.

Downward pressure:

Brent crude’s price has lost nearly $10/bbl in the previous session following media reports suggesting a ceasefire deal between the US and Iran could be reached soon.

“The oil market has come under renewed pressure as the US-Iran ceasefire appears to still be holding despite a recent flare-up in tensions,” two analysts from ING Bank said.

​A report by Axios stated the US and Iran are finalising a one-page memo to end the Middle East conflict – sending oil prices lower.

Earlier today, US President Donald Trump said that progress has been made toward reaching a ceasefire deal with Tehran.

“Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran,” Trump wrote on social media platform Truth Social.

By Nachiket Tekawade and Aparupa Mazumder

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